How this SaaS churn and LTV calculator works
logo churn = customers lost ÷ starting customersLTV = ARPA × gross margin ÷ monthly logo churnCAC = acquisition spend ÷ new customersUnderstanding your results
Logo churn differs from revenue churn. MRR is recurring subscription revenue, not bookings, cash, ARR, or GAAP revenue. Keep time windows, customer definitions, gross-margin treatment, and acquisition cost allocation consistent before using metrics in a pitch deck.
Frequently asked questions
What happens when churn is zero?
The simple reciprocal model produces an unbounded LTV, which is not credible evidence of infinite value. Use a longer cohort window or a capped forecasting horizon.
What is a good LTV:CAC ratio?
No universal ratio is appropriate. Stage, payback, retention quality, capital cost, sales cycle, growth rate, and gross margin change the interpretation.
Methodology & data sources
Important professional disclaimer
Planning estimate only—not accounting, valuation, investment, fundraising, or financial advice. Non-GAAP metrics require consistent definitions and reconciliation where applicable.