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SaaS Churn & Customer Lifetime Value (CLV) Calculator

Analyze your retention health and customer profitability

Your Key Performance Indicators (KPIs)

Monthly Churn Rate 0%
Customer Lifetime (Months) 0
Customer Lifetime Value (CLV) $0
Retention Rate 0%

Understanding Your SaaS Churn and CLV

In the world of Software as a Service (SaaS), Churn Rate is the silent killer. It represents the percentage of subscribers who discontinue their subscriptions within a given time period. For a subscription business to thrive, your Customer Lifetime Value (CLV) must significantly outweigh your Customer Acquisition Cost (CAC).

The Formulas We Use

  • Churn Rate: (Customers Lost / Total Starting Customers) × 100
  • Customer Lifespan: 1 / Churn Rate (decimal)
  • CLV: (ARPU × Gross Margin %) / Churn Rate

Why CLV Matters

Your CLV tells you the total net profit you expect to earn from a customer throughout their entire relationship with your company. If your CLV is $500, you know that spending $450 to acquire that customer leaves you with very thin margins, whereas spending $100 is highly efficient. A healthy SaaS ratio is typically considered a CLV:CAC ratio of 3:1 or higher.

Practical Example

Imagine you start the month with 500 customers. During the month, 10 customers cancel. Your ARPU is $100 and your gross margin is 85%.

Churn Rate 2.0%
Avg. Lifespan 50 Months
Calculated CLV $4,250

In this scenario, if your cost to acquire a customer (CAC) is under $1,400, your business model is likely sustainable and ready to scale.

function calculateSaaSMetrics() { var start = parseFloat(document.getElementById('startCustomers').value); var lost = parseFloat(document.getElementById('lostCustomers').value); var arpu = parseFloat(document.getElementById('arpu').value); var margin = parseFloat(document.getElementById('grossMargin').value); if (isNaN(start) || isNaN(lost) || isNaN(arpu) || isNaN(margin) || start 0) { lifespan = 1 / churnRateDecimal; clv = (arpu * (margin / 100)) / churnRateDecimal; } else { lifespan = Infinity; clv = Infinity; } // Display Results document.getElementById('resChurn').innerHTML = churnRatePercent.toFixed(2) + "%"; document.getElementById('resRetention').innerHTML = retentionRate.toFixed(2) + "%"; if (lifespan === Infinity) { document.getElementById('resLifespan').innerHTML = "Infinite"; document.getElementById('resCLV').innerHTML = "N/A (0% Churn)"; } else { document.getElementById('resLifespan').innerHTML = lifespan.toFixed(1) + " Mo"; document.getElementById('resCLV').innerHTML = "$" + clv.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); } document.getElementById('resultsArea').style.display = 'block'; // Scroll to results smoothly document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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