SaaS Unit Economics Template
A template for calculating ARPU, Churn, Lifespan, LTV, and CAC
Hello from Ryan Allis at SaaS Circle, the private growth community for SaaS CEOs & Founders.
This week we have a handy free SaaS Unit Economics template for you.
Just make a copy of the Google Sheet, fill in your own numbers, and see the following figures automatically calculate:
Average Revenue Per Customer (ARPC)
Average Customer Lifespan Months (Lifespan)
Cost Per Lead (CPL)
Customer Acquisition Cost (CAC)
CAC Payback Months
Customer Lifetime Value (LTV)
LTV:CAC Ratio
Max CAC Target (to ensure you’re not spending too much on S&M)
Minimum CAC Target (to ensure you’re growing fast enough)
This will help you assess whether you’re spending too much on Sales & Marketing or not enough — based on your customer lifetime value (LTV).
I put some notes in there for what good ranges are for CAC Payback Months and LTV:CAC ratios depending on how fast you want to grow revenue vs. generate EBITDA. Hope it’s helpful!
I’ll be back in touch next week with even more killer SaaS scaling content. I’m here to help!
All the best,
Ryan Allis
CEO & Founder, SaaS Circle
SaaS Growth & Scaling Community
P.S. - Apply here to join our weekly SaaS CEO & Founder Growth Mastermind here. We help each other grow our SaaS companies faster.
About this article: If you like this article and want more my free 1240 slide SaaS Growth Playbook goes into even greater detail about each stage of this process.
How to Work Together: For more resources and to learn more about our B2B SaaS CEO Coaching service working directly with Ryan, visit www.hillcanyon.com.
Join the Community: For more how-to-scale-up support and content, apply to join SaaS Circle, our mastermind community for growth-focused SaaS CEOs. We offer a free two-week trial to the community for qualified SaaS CEOs and founders.
About The Author
Ryan Allis is the founder of SaaS Circle, the mastermind community for growth-focused SaaS CEOs. He is a three time INC 500 CEO. He was previously CEO of iContact and grew the firm as founder/CEO to 70,000 customers, 1 million users, 300 employees, $50M per year in sales, and an exit for $169M to Vocus (NASDAQ:VOCS).
Since the sale of iContact, Ryan has been the CEO coach to high-growth SaaS firms including Tatango, Seamless.ai, Pipeline, Datalyse, Green Packet, Revenue Accelerator, Galleon, and EventMobi. Ryan has been part of the EO and Summit Series communities, and is the founder of Hive.org, a global community for purpose-driven leaders.
He holds an MBA from Harvard Business School, where he was Co-President of the Social Enterprise Club and a member of the Harvard Graduate School Leadership Institute.
Four Helpful Free SaaS Growth Resources
The most in-depth guide for scaling up SaaS companies from $0 to $50M in ARR. Including over 1,200 slides on every aspect of SaaS scaling.
A fourteen page in-depth PDF on we take each CEO client through a six-phase process designed to increase lead volume, customer acquisition, and revenue growth — and then scale up the sales team, executive team, and investor support as we help you prepare for future fundraising rounds (if needed) or an exit (if desired).
A twenty page in-depth PDF on how to scale a B2B SaaS Company from $1M to $50M ARR. Covering CAC-based customer acquisition, sales team scaling, venture capital markets, and preparing for the exit.
The SaaS Growth Formula was written to help SaaS CEOs who are focused on growing their company's sales - by implementing a simple formula called The Growth Formula. This formula is for companies that have already established product/market fit, already have paying customers, and are now ready to scale up through scientific and CAC-based digital marketing, inbound sales, and outbound sales.
We’ll see you next week with more great SaaS growth and scaling content!