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SaaS Churn Rate & Customer Lifetime Value (LTV) Calculator
Calculate Customer Lifetime Value (LTV), LTV to CAC ratio, user logo churn, and MRR churn rate to evaluate venture funding unit economics.
Material & Specification Presets
SaaS Cash & Expense Inputs
Live Real-Time Math$
$
+8%
80%
Monthly Operating Overhead (OPEX)
Runway & Burn ProjectionsLive Calculation
Net Cash Runway Remaining:
13.5Months
Zero Cash Date: Oct 2027
Gross Monthly Burn:$17,000
Net Monthly Burn Rate:-$7,400 /mo
Projected MRR in 6 Months (+8% MoM):$19,042
Comprehensive Guide: SaaS Churn Rate & Customer Lifetime Value (LTV) Calculator
Customer Lifetime Value (LTV) calculates the total gross margin profit generated by a customer over their lifetime. Healthy SaaS companies maintain an LTV:CAC ratio > 3.0x.
Mathematical Formula Breakdown
LTV = (ARPU × Gross Margin %) / Monthly Logo Churn %. LTV:CAC Ratio = LTV / Blended CAC.
Industry Pricing Benchmarks
Benchmark LTV:CAC ratio is 3.0x to 5.0x. Logo churn under 1.5%/month is considered healthy for SMB SaaS.
Optimization Strategies
- Improve onboarding activation workflows to reduce early churn within the first 60 days.
- Implement annual billing incentives (2 months free) to lock in commitment and reduce voluntary churn.
Frequently Asked Questions
What is a good LTV to CAC ratio for SaaS?
3.0x or higher indicates strong scalable unit economics suitable for venture capital expansion.