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Free SaaS Metrics Calculator

Enter one period's MRR movement (starting MRR + new + expansion − contraction − churn) plus customer count and CAC and get all the SaaS metrics that growth-stage investors and operators actually use. LTV via Bessemer formula. Rule of 40 health check. Industry benchmark targets for each metric.

📐 Open methodology

MRR movement (this month)

$
$
$
$
$

Unit economics

$
%

SaaS benchmark: 70-90%. Includes hosting, support, payment processing.

Rule of 40 inputs

%
%

Negative = burning. Healthy SaaS: growth + EBITDA ≥ 40.

MRR

$115,000

LTV:CAC 2.3 · Rule of 40: 50

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ARR

$1,380,000

LTV:CAC

2.3:1

📐 Open methodology, sources & limitations

Formula

Net new MRR    = New + Expansion − Contraction − Churned
Ending MRR     = Starting MRR + Net new MRR
ARR            = Ending MRR × 12
ARPA           = Ending MRR ÷ ending customers

Gross MRR churn % = Churned MRR ÷ Starting MRR
Net MRR churn %   = (Churned + Contraction − Expansion) ÷ Starting MRR
GRR            = 1 − gross churn %
NRR            = 1 − net churn %

LTV            = (ARPA × gross margin) ÷ monthly churn rate
LTV:CAC        = LTV ÷ CAC
CAC payback    = CAC ÷ (ARPA × gross margin)   (months)
Rule of 40     = YoY revenue growth % + EBITDA margin %   (passes if ≥ 40)

Assumptions

  • Monthly churn rate used in the LTV formula equals the gross MRR churn rate for the period.
  • LTV uses the Bessemer formula — gross-margin-weighted ARPA divided by monthly churn.
  • All MRR movement figures relate to a single period; metrics are a point-in-time snapshot.
  • Gross margin is entered as a percent and clamped to the 0–100 range.
  • Rule of 40 sums year-over-year revenue growth % and EBITDA margin %, both supplied directly.

Sources

  • Bessemer Venture Partners — State of the Cloud / SaaS metrics (LTV, CAC, retention)
  • Rule of 40 — growth-stage SaaS health benchmark (Brad Feld)
  • Standard SaaS definitions of MRR/ARR, GRR, and NRR

This tool does NOT model:

  • Quarterly or trailing rolling-average smoothing of lumpy months
  • Cohort-based retention analysis
  • Fully-loaded CAC including sales ramp time and overhead — uses the CAC you enter
  • Variable gross margin across customer segments
  • Discounting of future cash flows in LTV
  • Seasonality and contract-length effects on churn

Last reviewed: 2026-05-20

This methodology section exists so you can verify the math. We show our formulas because you deserve to know how a number was calculated. This is calculation transparency, not financial advice.

The SaaS metrics that actually matter

SaaS investors and operators have converged on a small set of metrics that predict long-run business health. This calculator computes all of them from a single period's MRR movement, plus customer count and CAC.

The MRR waterfall

  • New MRR: revenue from new customers acquired this period
  • Expansion MRR: existing customers upgrading or buying more seats
  • Contraction MRR: existing customers downgrading (not churning)
  • Churned MRR: customers who cancelled entirely
  • Net new MRR = New + Expansion − Contraction − Churn → MRR growth in the period

Retention metrics — GRR vs NRR

Gross Revenue Retention (GRR) = 100% − gross churn rate. Tells you how much revenue you keep from existing customers, EXCLUDING expansion. Target ≥ 90% for healthy SaaS; great = 95%+.

Net Revenue Retention (NRR) = 100% + expansion rate − churn rate. Includes expansion, so it can exceed 100% — meaning your existing customer cohort grew revenue this period even without acquiring new customers. Target ≥ 110% for healthy SaaS; world-class = 130%+. Snowflake at IPO: 158%. The metric Wall Street cares about most.

LTV and the LTV:CAC ratio

Bessemer's LTV formula: LTV = ARPA × gross margin ÷ monthly churn rate. So an SMB SaaS at $400 ARPA, 75% gross margin, 3% monthly churn → LTV = $400 × 0.75 ÷ 0.03 = $10,000. That's the average lifetime customer value (gross-margin-weighted).

LTV:CAC ratio = LTV ÷ Customer Acquisition Cost. Target ≥ 3:1 for a healthy growth-stage SaaS. Below 1:1 means you're paying more to acquire customers than they're worth. Above 5:1 often signals you're under-investing in growth (could spend more to acquire more).

CAC payback months

CAC payback = CAC ÷ (ARPA × gross margin). How many months of gross profit it takes to recover the cost of acquiring the customer. Target ≤ 12 months for healthy SaaS; ≤ 6 months is excellent. Longer payback is acceptable for very-low-churn enterprise but problematic for transactional SMB.

The Rule of 40

YoY revenue growth % + EBITDA margin % ≥ 40%. Coined by Brad Feld and now ubiquitous as the single-number health check for growth-stage SaaS. A company growing 60% with −20% EBITDA passes (60 + −20 = 40); a company growing 30% with +20% EBITDA also passes (30 + 20 = 50). Public SaaS comps trade at higher multiples when above 40.

Frequently Asked Questions

What's the difference between GRR and NRR?+

GRR (Gross Revenue Retention) measures retained revenue EXCLUDING expansion — capped at 100%. NRR (Net Revenue Retention) INCLUDES expansion and can exceed 100%. Healthy SaaS: GRR ≥ 90%, NRR ≥ 110%. NRR > 100% means your existing customer cohort grew revenue this period without acquiring new customers — the metric Wall Street values most.

What's a healthy LTV:CAC ratio?+

Target ≥ 3:1 (you make $3+ for every $1 spent acquiring). Below 1:1 means you're losing money per customer. Above 5:1 often signals you're under-investing in growth — there's room to spend more on acquisition and accelerate. Pair with CAC payback for a complete picture.

How is LTV calculated?+

Bessemer formula: ARPA × gross margin ÷ monthly churn rate. So $400 ARPA × 75% gross margin ÷ 3% monthly churn = $10,000 LTV. The formula assumes constant churn and ARPA over the customer lifetime — useful directional metric, not a measured value.

What's CAC payback?+

Months it takes to recover the customer acquisition cost from gross profit. CAC ÷ (ARPA × gross margin). Target ≤ 12 months for healthy growth-stage SaaS; ≤ 6 months is excellent; > 24 months problematic except for very-low-churn enterprise.

What is the Rule of 40?+

YoY revenue growth % + EBITDA margin % ≥ 40%. Coined by Brad Feld; now the single-number health check for growth-stage SaaS. 60% growth − 20% EBITDA = 40 (passes). 30% growth + 20% EBITDA = 50 (passes). Public SaaS trading multiples are strongly correlated with this number.

How should I compute CAC?+

Fully-loaded: total sales + marketing spend (people, tools, paid media, content, events, ramp time) ÷ new customers acquired. Not just paid media. For accurate LTV:CAC, include the salary of your sales reps, not just their commission.

What if I have annual contracts?+

Convert to MRR for these metrics. A $12,000 annual contract = $1,000 MRR for the purposes of the SaaS metrics framework. ARR (which is just MRR × 12) reflects the run-rate, not the cash collected — annual prepay just affects working capital, not the unit-economic story.

Is my data stored?+

No. All math runs in your browser. MRR, customer count, and financials never touch any server.

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