What is MRR and how is it calculated?

MRR (Monthly Recurring Revenue) is the predictable revenue your subscription business generates each month. It is calculated by multiplying your total active customers by your average monthly subscription price.

What is a good churn rate for a SaaS company?

A healthy customer churn rate for SaaS is typically below 5% monthly. Revenue churn should stay below 4%. Anything above 8% customer churn or 7% revenue churn is considered high risk and warrants immediate attention.

What is net revenue retention (NRR) and what is a good NRR?

Net Revenue Retention measures the revenue retained from existing customers including expansion, churn, and contraction. A healthy NRR is above 110%, meaning your existing customers generate more revenue over time even after accounting for cancellations and downgrades.

What is the Rule of 40 in SaaS?

The Rule of 40 states that a healthy SaaS company's revenue growth rate plus profit margin should equal or exceed 40%. It balances growth and profitability — a company growing 30% with a 10% profit margin passes, as does one growing 50% with a -10% margin.

What is CAC payback period and what is healthy?

CAC payback period is the number of months it takes to recover the cost of acquiring a new customer, calculated as CAC divided by the gross profit per customer per month. A healthy payback period is under 12 months; anything over 18 months is considered high risk.

Is this SaaS metrics calculator free?

Yes, Free SaaS Metrics is completely free. All calculations run in your browser and your data never leaves your device. You can save scenarios locally to compare different inputs over time. No signup, no account, and no data collection required.

How do you calculate LTV for a SaaS business?

Customer Lifetime Value (LTV) is calculated by dividing ARPU (adjusted for gross margin) by the monthly churn rate. The formula is: LTV = (ARPU × Gross Margin) ÷ Monthly Churn Rate. For example, if ARPU is $99, gross margin is 80%, and monthly churn is 4%, LTV = ($99 × 0.80) ÷ 0.04 = $1,980. This represents the total gross profit a customer generates before they churn.

What is the difference between gross and net revenue retention?

Gross Revenue Retention (GRR) measures revenue retained from existing customers after churn and contraction, excluding expansion — it can never exceed 100%. Net Revenue Retention (NRR) includes expansion revenue, so it can exceed 100%. GRR tells you how well you prevent revenue loss; NRR tells you whether existing customers are growing. A healthy GRR is above 85%, while a healthy NRR is above 110%.

What is a good ARPU for SaaS?

ARPU varies enormously by segment. Self-serve SMB SaaS typically sees $10–$50 ARPU, mid-market $100–$500, and enterprise $1,000+. There is no universal good ARPU — what matters is whether ARPU is rising or falling over time, and whether it is high enough to make your CAC payback economically viable. A rising ARPU signals successful upselling and pricing power.

How do you reduce SaaS churn?

Reducing churn starts with understanding why customers leave. Survey churned customers, improve onboarding to get users to their aha moment faster, invest in customer success for at-risk accounts, and offer annual plans to reduce monthly cancellation friction. Product improvements that increase stickiness — like integrations, data lock-in, or team features — also reduce churn. Even a 1% reduction in monthly churn can add 20%+ to LTV over time.

Free SaaS Metrics — SaaS Metrics Calculator (MRR, Churn, LTV:CAC & More)

Free SaaS Metrics CalculatorCalculate the 14 SaaS metrics that drive your business: MRR, ARR, ARPU, customer churn rate, revenue churn rate, gross revenue retention (GRR), net revenue retention (NRR), expansion MRR, CAC, LTV, CAC payback period, LTV:CAC ratio, Rule of 40, and burn multiple. All calculations run in your browser with instant health benchmarks and saved scenarios.In-Depth SaaS Metrics Guides