How it works
- Fill in your current MRR, average revenue per account, new customers per month and monthly churn.
- Add your monthly sales and marketing spend and your gross margin.
- Read LTV, CAC, LTV:CAC and CAC payback. The tags show whether each number is healthy.
- Check the projection to see what one point less churn is worth over two years.
The metrics in plain language
MRR is the recurring revenue you bill each month. Churn is the share of customers you lose each month. LTV (lifetime value) is the gross profit a customer brings before leaving: ARPA times gross margin divided by churn. CAC is what it costs to win a customer. CAC payback is how many months of gross profit it takes to earn that cost back.
Why churn matters more than it looks
A 4% monthly churn sounds small, but it means the average customer stays about 25 months. Cutting it to 3% stretches that to 33 months and raises LTV by a third. Because the effect compounds every month, reducing churn is usually the cheapest way to grow MRR.