SaaS Unit Economics Calculator

Measure, Track, and Improve Your SaaS Profitability in One Place

Understanding your SaaS business performance shouldn’t take hours of spreadsheets. This SaaS Unit Economics Calculator gives you an instant, accurate breakdown of your key financial metrics: ARR, MRR, CLTV, Churn, and CAC,  all in one dashboard.

Whether you’re an early-stage founder or a scaling finance team, this calculator helps you answer critical growth questions:

• How much recurring revenue are we generating monthly and annually?
• Are our customers profitable in the long run?
• Is our churn manageable or eating into growth?
• Are we spending efficiently to acquire customers?
  
  

Let’s explore how each metric helps you decode your SaaS performance.

1. ARR Calculator (Annual Recurring Revenue)

Your ARR (Annual Recurring Revenue) represents the predictable, subscription-based revenue your SaaS business generates every year. It’s one of the most important metrics for tracking long-term growth and forecasting revenue stability.

Use the ARR Calculator to:

• Instantly convert your MRR into annual revenue
• Project revenue targets for future growth
• Benchmark your ARR performance against industry averages
  
  

✅ Formula:
ARR = MRR × 12 (Monthly Recurring Revenue X 12)

ARR gives investors and internal teams a clear snapshot of your recurring revenue health. Whether you’re preparing for a funding round or evaluating retention efforts, this calculator provides the visibility you need.

ARR Calculator User Guide

How to Use

1. Enter Number of Paying Customers - Input your total active subscribers

2. Enter Average Revenue Per User (Monthly) - Add the monthly subscription amount per customer

3. Click "Calculate ARR" - See your Annual Recurring Revenue immediately

Understanding Your Results

• ARR - Your annualized recurring revenue (MRR × 12)
• MRR - Your monthly recurring revenue baseline
• Compare both metrics side-by-side to understand monthly vs. annual performance

Why It Matters

ARR gives you a long-term view of your business health and is the primary metric investors use to value SaaS companies. It's essential for strategic planning and fundraising.

2. MRR Calculator (Monthly Recurring Revenue)

Your MRR (Monthly Recurring Revenue) is the foundation of all SaaS financial planning. It tracks your predictable monthly income and helps you measure growth momentum.

Use the MRR Calculator to:

• Calculate monthly recurring revenue from subscriptions
• Track upgrades, downgrades, and churn over time
• Forecast revenue growth for upcoming months
  
  

✅ Formula:
MRR = Total Active Customers × Average Revenue Per User (ARPU)

With the MRR calculator, you can keep a pulse on your cash flow, spot trends early, and make data-driven decisions about pricing or expansion.

MRR Calculator User Guide

How to Use

1. Enter Number of Paying Customers - Input your total count of active, paying subscribers for the month

2. Enter Average Revenue Per User (Monthly)- Add the average monthly subscription amount per customer

3. Click "Calculate MRR" - View your Monthly Recurring Revenue instantly

Understanding Your Results

• MRR - Your total predictable monthly revenue from subscriptions
• ARR - Your MRR multiplied by 12, showing annualized recurring revenue
• The visual bar shows MRR (solid blue) extending to ARR (faded blue) over 12 months

Why It Matters

MRR is the foundation of SaaS financial health. It helps you forecast revenue, measure growth, and make informed business decisions about hiring, marketing spend, and product development.

3. CLTV Calculator (Customer Lifetime Value)

Your CLTV (Customer Lifetime Value) measures the total revenue you can expect from a customer throughout their entire relationship with your company.

Use the CLTV Calculator to:

• Estimate the long-term value of each customer segment
• Compare customer value against acquisition costs (CAC)
• Identify which plans or cohorts drive the highest ROI
  
  

✅ Formula:
CLTV = ARPU × Average Customer Lifespan

When you understand your CLTV, you can make smarter investment decisions and improve your payback periods. It’s a core metric that reveals whether your growth is sustainable or burning through cash.

CLTV Calculator User Guide

How to Use

1. Enter Average Revenue Per User (Monthly) - Input your monthly subscription price per customer

2. Enter Gross Margin (%) - Add your profit margin percentage (typically 70-90% for SaaS)

3. Enter Churn Rate (% Monthly) - Input the percentage of customers who cancel each month

4. Enter CAC (Optional) - Add your Customer Acquisition Cost to see CLTV:CAC ratio

Understanding Your Results

• CLTV - The total revenue expected from a customer over their lifetime
• Costs - Estimated operating costs over customer lifetime
• CAC - Your acquisition cost (if entered)
• CLTV:CAC Ratio - Ideally 3:1 or higher (you earn $3 for every $1 spent acquiring customers)
• Average Lifetime - How long customers typically stay subscribed (in months)

Why It Matters

CLTV tells you how much each customer is worth to your business. When compared to CAC, it shows whether your business model is sustainable and profitable.

4. Churn Calculator (Customer Churn Rate)

The Churn Calculator helps you track customer retention — a critical metric that directly impacts your growth, ARR, and investor confidence.

Use the Churn Calculator to:

• Measure customer or revenue churn monthly or annually
• Identify retention gaps and optimize customer success efforts
• Understand how churn trends affect your recurring revenue
  
  

✅ Formula:
Churn Rate = (Customers Lost ÷ Total Customers at Start of Period) × 100

Lower churn means higher lifetime value and more predictable growth. This calculator helps you visualize the financial impact of customer losses in seconds.

Churn Rate Calculator User Guide

How to Use

1. Enter Customers at Start of Period - Input how many customers you had at the beginning of the month

2. Enter Customers at End of Period - Add how many customers you have at month's end

3. Enter New Customers Gained - Input how many new customers you acquired during the month

4. Click "Calculate Churn Rate" - View your customer churn analysis

Understanding Your Results

• Churn Rate - The percentage of customers who cancelled (lower is better)
• Retention Rate - The percentage of customers who stayed (higher is better)
• Average Lifetime - How many months customers typically stay subscribed
• The pie chart shows the breakdown: Retained (green), Churned (red), and New (blue) customers

Why It Matters

Churn is one of the most critical SaaS metrics. A 5% monthly churn rate means you lose half your customers every year. Reducing churn by even 1% can dramatically improve profitability and growth.

5. CAC Calculator (Customer Acquisition Cost)

Your CAC (Customer Acquisition Cost) shows how much you’re spending to bring in each new customer — a must-have metric for tracking marketing efficiency and profitability.

Use the CAC Calculator to:

• Calculate total acquisition costs per customer
• Compare CAC with CLTV to ensure sustainable growth
• Evaluate marketing ROI across channels and campaigns
  
  

✅ Formula:
CAC = Total Sales & Marketing Spend ÷ Number of New Customers Acquired

Balancing CAC with CLTV is key to healthy unit economics. This calculator helps you understand how much you can afford to spend while maintaining strong margins.

CAC Calculator User Guide

How to Use

1. Enter Marketing & Advertising Spend - Input total costs for ads, campaigns, tools, and software

2. Enter Sales & Marketing Salaries - Add total compensation for your sales and marketing team

3. Enter Number of New Customers Acquired - Input how many new customers you gained during this period

4. Click "Calculate CAC" - See your Customer Acquisition Cost breakdown

Understanding Your Results

CAC Per Customer - The average cost to acquire one new customer

Total Costs - Your combined marketing and sales expenses

Customers Acquired - New customers gained during the period

The pie chart shows cost breakdown: Marketing (blue) vs. Salaries (purple)

Why It Matters

CAC determines whether your customer acquisition strategy is efficient. Compare it to CLTV - if CAC is too high relative to customer lifetime value, you're spending too much to acquire customers and need to optimize your sales and marketing funnel.

Why Use a Combined SaaS Unit Economics Calculator?

Instead of juggling multiple spreadsheets, this all-in-one calculator lets you instantly compute, compare, and optimize the most important SaaS metrics in one place.

It helps you:

• Validate your business model with accurate unit economics
• Align sales, marketing, and finance around real-time data
• Make informed decisions about pricing, retention, and scalability
• Build investor-ready reports faster
  
  

Whether you’re preparing for a board meeting, fundraising, or planning your next growth move, the SaaS Unit Economics Calculator simplifies complex financial modeling into clear, actionable insights.

‍