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Business
SaaS Metrics Calculator
Calculate key SaaS business metrics: MRR, ARR, churn rate, customer lifetime value (LTV), customer acquisition cost (CAC), LTV:CAC ratio, and months to recover CAC.
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Frequently asked
questions
A ratio of 3:1 is generally considered healthy — you earn 3x what it costs to acquire a customer. Below 1:1 means you're losing money per customer. Above 5:1 might mean you're under-investing in growth.
Best-in-class SaaS companies target below 2% monthly churn (under 24% annual). SMB-focused SaaS often sees 3–7% monthly; enterprise SaaS under 1%. Negative revenue churn (expansion > churn) is the goal.
MRR (Monthly Recurring Revenue) is revenue contracted on a monthly basis. ARR (Annual Recurring Revenue) = MRR × 12. ARR is the standard for enterprise/annual contract businesses; MRR for monthly subscription businesses.