# SaaS metrics calculator

Turn a few numbers into the core SaaS metrics investors and teams track.

## How it works

Lifetime value is the margin a customer brings each month, divided by the share who leave each month. CAC payback is how many months of margin it takes to earn back what you spent to win them.

```
LTV = revenue × margin ÷ churn
payback = CAC ÷ (revenue × margin)
```

## Questions

### What is a good LTV to CAC?

About 3 to 1 or better. Below 1 to 1, each customer costs more than they bring.

### Is churn by customer or by revenue?

This uses customer churn. Revenue churn also counts downgrades.

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- [SLA credit calculator](https://powertraces.com/tools/sla-credits)
- [Funnel drop-off calculator](https://powertraces.com/tools/funnel-drop-off)

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