Analyze your subscription business health and customer value metrics.
Average Revenue Per User (ARPU)$0.00
Customer Lifetime Value (LTV)$0.00
Monthly Revenue Loss (Churn $)$0.00
Average Customer Lifespan0 months
Revenue Ceiling (Equilibrium MRR)$0.00
Understanding SaaS Growth Metrics
In the Software as a Service (SaaS) world, growth isn't just about how many new customers you sign up; it's about how many you keep. This calculator helps you visualize the relationship between revenue, churn, and the long-term value of your users.
What is Customer Lifetime Value (LTV)?
LTV is the total amount of money a customer is expected to spend in your business during their entire relationship with you. For SaaS companies, it is typically calculated as ARPU / Churn Rate. If you include Gross Margin, it represents the actual profit value of that customer.
Why Churn Rate is the "SaaS Killer"
Churn rate represents the percentage of subscribers who cancel their subscription every month. Even a small increase in churn can drastically lower your LTV and cap your maximum possible revenue (Revenue Ceiling). For example, a 5% monthly churn means your average customer only stays for 20 months, whereas a 2% churn extends that to 50 months.
How to Use This Calculator
MRR: Enter your total monthly subscription revenue.
Customers: Your total active paying user base.
Churn Rate: The percentage of customers lost each month. A "good" SaaS churn rate is usually under 5% for B2B.
Gross Margin: The percentage of revenue left after the cost of goods sold (server costs, support, etc.).
Example Calculation
If you have $10,000 MRR with 100 customers ($100 ARPU) and a 5% churn rate:
Average Lifespan: 1 / 0.05 = 20 months
LTV: $100 / 0.05 = $2,000
Monthly Revenue Loss: $10,000 * 0.05 = $500
function calculateSaaSMetrics() {
var mrr = parseFloat(document.getElementById('mrr').value);
var customers = parseFloat(document.getElementById('customerCount').value);
var churn = parseFloat(document.getElementById('churnRate').value) / 100;
var margin = parseFloat(document.getElementById('grossMargin').value) / 100;
if (isNaN(mrr) || isNaN(customers) || isNaN(churn) || customers <= 0 || churn <= 0) {
alert("Please enter valid numbers. Churn rate and Customer count must be greater than zero.");
return;
}
// 1. Calculate ARPU
var arpu = mrr / customers;
// 2. Calculate LTV (Margin adjusted)
var ltv = (arpu / churn) * margin;
// 3. Calculate Monthly Revenue Loss
var revenueLoss = mrr * churn;
// 4. Calculate Lifespan
var lifespan = 1 / churn;
// 5. Calculate Revenue Ceiling (Assuming $0 growth, where growth = churn)
// This is a theoretical limit of MRR based on current churn and acquisition
// For this simple calc, we'll show the impact of churn on current revenue
var ceiling = mrr / churn; // Theoretical max if acquisition speed matched churn speed
// Display Results
document.getElementById('resARPU').innerText = "$" + arpu.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resLTV').innerText = "$" + ltv.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resChurnDollars').innerText = "$" + revenueLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resLifespan').innerText = lifespan.toFixed(1) + " months";
document.getElementById('resCeiling').innerText = "$" + mrr.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
// Update the ceiling label to be more descriptive based on logic
// We'll use it to show "Revenue lost per year" instead as it's more actionable
var yearlyLoss = revenueLoss * 12;
document.getElementById('resCeiling').innerText = "$" + yearlyLoss.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}) + " (Yearly)";
document.querySelector('[for="resCeiling"]').previousElementSibling.innerText = "Annual Revenue Leakage";
document.getElementById('saasResults').style.display = 'block';
}