How the calculation works
MRR = customers × revenue per customer. Average lifetime = 1 ÷ churn rate. Lifetime value = revenue per customer × lifetime.
Frequently asked questions
What is a good value to cost ratio?
Many SaaS teams aim for 3 to 1 or better, but it depends on the business.
What counts as churn?
Customers who cancel in a month divided by customers at the start of that month.