Use case: SaaS unit economics
This flow connects churn, LTV, CAC payback, and break-even CAC. Use it when evaluating acquisition spend, pricing changes, or new segments.
Recommended steps
- Quantify churn impact: churn impact calculator
- Estimate LTV from ARPA, margin, and churn: LTV calculator
- Convert CAC to a payback period: CAC payback period calculator
- Compute a break-even CAC for a target payback: break-even CAC calculator
- Translate run-rate into ARR: ARR calculator
Notes
- Use cohort-based churn where possible (by plan or segment), not blended churn across the entire base.
- Start conservative: model gross churn first, then test sensitivity with net churn if expansion is strong.
- Keep CAC definitions consistent across time (include commissions, tools, and headcount allocation).