SaaS Value Calculator

Find out if investing in a SaaS company is a good move. This tool helps you understand the potential return on investment before you decide.

Understanding SaaS Valuation

Key factors include recurring income, customer retention, acquisition costs, lifetime value, and profit margins.

Breaking Down the Metrics:

  • Monthly Recurring Revenue (MRR): The income a company consistently generates each month from its subscriptions.
  • Customer Loss Percentage (Churn): Shows how many customers stop using the service over a month. A lower number suggests high customer satisfaction.
  • Cost to Acquire a Customer (CAC): This is how much it costs, on average, to bring in a new customer. It covers marketing, sales efforts, and other expenses.
  • Lifetime Value of a Customer (LTV): The total income you can expect from a customer during their time with your company. Calculated from the average revenue per user, considering profit margin and customer retention rate.
  • Profit Margin: Measures the efficiency of your service after covering the direct costs involved in delivering it.