SAAS Profit Calculator – Measure Your Recurring Revenue

SaaS Profit Calculator

Calculate potential revenue, costs, and profitability for your SaaS business

Business Model

Pricing Model Monthly Subscription Annual Subscription Usage-Based Tiered Pricing

Monthly Price ($)

Annual Discount (%)

Customer Metrics

Initial Customers

Monthly Growth Rate (%)

Monthly Churn Rate (%)

Cost Structure

Customer Acquisition Cost ($)

Monthly Fixed Costs ($)

Variable Cost per Customer ($)

Time Horizon

Projection Period (Months)

Ramp-Up Period (Months)

Ramp-Up Target (%)

SaaS Profitability Results

Total Revenue

$0

$

Cumulative revenue over projection period

Total Costs

$0

$

Fixed + variable + acquisition costs

Net Profit

$0

$

Profit after all expenses

0%

Key Metrics

Profit Margin

0

%

Net profit as % of revenue

LTV

$0

$

Customer lifetime value

Payback Period

0

months

Time to recover CAC

Monthly Performance

Month	Customers	New Customers	Churned

Month	Revenue	Costs	Profit

Month	Cumulative Profit	Profit Margin	Growth Rate

This calculator provides estimates only. Actual results may vary based on market conditions and business execution. Print Report

1. Introduction

A SaaS Profit Calculator helps software-as-a-service businesses measure profitability by analyzing recurring revenue against customer acquisition costs, operational expenses, and churn rates. This essential tool enables data-driven decisions for scaling subscription-based businesses.

2. Key SaaS Metrics to Calculate

Core Profitability Metrics

• Monthly Recurring Revenue (MRR)

• Annual Recurring Revenue (ARR)

• Customer Acquisition Cost (CAC)

• Customer Lifetime Value (LTV)

• Gross Margin

• Churn Rate

Advanced Metrics

• LTV:CAC Ratio

• Months to Recover CAC

• Revenue Retention Rate

3. SaaS Profit Formula

Basic Profit Calculation

Net Profit = (MRR × Gross Margin %) - Operating Expenses

Detailed Calculation Breakdown

1. Calculate Gross Revenue

MRR = Active Customers × Average Revenue Per User (ARPU)

 2. Determine Gross Profit

Gross Profit = MRR × Gross Margin % (Typical SaaS gross margins: 70-90%)

 3. Subtract Operating Costs

Net Profit = Gross Profit - (CAC + R&D + G&A)

4. Critical Inputs for the Calculator

Input	Description	Example Values
Active Customers	Paying subscribers	1,000
ARPU	Average revenue per user	$50/month
Gross Margin	Revenue after COGS	80%
Monthly Churn	Customer attrition rate	3%
CAC	Customer acquisition cost	$300
Operating Expenses	R&D, marketing, etc.	$20,000/month

5. Example SaaS Profit Calculation

Scenario:

• 1,000 customers

• $50 ARPU

• 80% gross margin

• $300 CAC (50 new customers/month)

• $20,000 operating expenses

Calculations:

1. MRR = 1,000 × $50 = $50,000

2. Gross Profit = $50,000 × 80% = $40,000

3. CAC Expenses = 50 new customers × $300 = $15,000

4. Net Profit = $40,000 - ($15,000 + $20,000) = $5,000

6. Advanced SaaS Metrics

1. Customer Lifetime Value (LTV)

     LTV = (ARPU × Gross Margin) ÷ Churn Rate = ($50 × 80%) ÷ 3% = $1,333

2. LTV:CAC Ratio

     $1,333 : $300 = 4.4:1 (Healthy ratio)

3. Months to Recover CAC

    $300 ÷ ($50 × 80%) = 7.5 months

7. SaaS Profitability Benchmarks

Metric	Excellent	Good	Poor
Gross Margin	>85%	75-85%	<70%
LTV:CAC	>3:1	2-3:1	<1:1
Churn Rate	<2%	2-5%	>5%
CAC Payback	<12 mo	12-18 mo	>24 mo

8. Using the Calculator for Business Decisions

1. Pricing Strategy - Test how ARPU changes affect profitability

2. Marketing Budget - Determine maximum sustainable CAC

3. Product Investment - Calculate how R&D spend impacts margins

4. Growth Planning - Model how customer growth affects cash flow