Core SaaS metrics explained
This calculator combines several key subscription-business metrics from a handful of inputs: Monthly Recurring Revenue (MRR), churn rate, customer acquisition cost (CAC), and customer count.
The formulas
- ARR = MRR × 12
- ARPA = MRR / Number of Customers
- LTV = ARPA / Churn Rate
- LTV:CAC Ratio = LTV / CAC
An LTV:CAC ratio around 3:1 or higher is a commonly cited benchmark for a healthy, sustainable SaaS business, though ideal targets vary by stage and industry.
For general business planning and education.
Last reviewed August 2026