SaaS Churn Rate & Customer LTV Calculator: Benchmark Retention in 2026
Calculate your SaaS monthly churn rate and customer lifetime value (LTV) to benchmark retention and optimize acquisition spend.
How SaaS Churn & LTV Are Calculated
Monthly churn rate measures the percentage of customers lost each month. Customer LTV represents the total revenue expected from a single customer over their relationship with your product.
LTV assumes constant ARPU and steady-state churn — expansion revenue (upsells) can push real LTV higher. A healthy LTV:CAC ratio is ≥3:1; payback period should be under 12 months for capital-efficient SaaS.
How to Use the SaaS Churn Rate & LTV Calculator
Enter Total Customers
The number of active paying customers at the start of the period.
Enter Monthly ARPU
Average Revenue Per User per month — divide your MRR by total customers if you don't have it directly.
Set Monthly Churn Rate
The percentage of customers who cancel each month. Check your billing platform (Stripe, Chargebee, etc.) for this figure.
Enter Customer Acquisition Cost
Total sales and marketing spend divided by new customers acquired in the same period.
Review LTV, payback period, and MRR
Use the LTV:CAC ratio to assess whether your acquisition spend is sustainable.
Real-World Scenario Example
"A B2B SaaS startup with 500 customers, $99/month ARPU, 3.5% monthly churn, and a $450 CAC."
Inputs
Result
Customer LTV ≈ $2,829, LTV:CAC ratio ≈ 6.3:1, CAC payback ≈ 4.5 months, MRR = $49,500. This is strong unit economics.
Important Disclaimer
LTV and churn calculations are estimates based on current-period averages and assume constant ARPU and steady-state churn. Actual results will vary based on product pricing changes, cohort behavior, and expansion revenue.
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