B2B Enterprise SaaS LTV & CAC Calculator
Simulate high-ticket enterprise contract unit economics, gross margins, and customer lifetime value.
Parameters & Config
Average monthly subscription fee billed per active customer
Percentage of customers cancelling their subscription each month
Total sales and marketing expenditure required to acquire one customer
Percentage of subscription revenue retained after hosting and direct support costs
Total gross profit generated per customer over their active lifecycle
Benchmark metric for SaaS efficiency (Ideal: 3.0x to 5.0x)
Key Metrics & Sub-Totals
3 itemsCalculation Summary & Unit Breakdown
| Metric | Calculated Value | Notes / Logic |
|---|---|---|
| Monthly ARPU (Revenue/User) | $1200.00 | Per user/month |
| Monthly Churn Rate | 1.2% | Customer attrition |
| Gross Margin Percentage | 85% | Cost of service deducted |
| Customer Lifespan | 83.3 months | 1 / Churn rate |
| Customer Acquisition Cost (CAC) | $8500.00 | Blended marketing + sales |
| Customer Lifetime Value (LTV) | $85000.00 | Total gross profit per customer |
| LTV to CAC Health Ratio | 10x | Benchmark: >3.0x |
| CAC Payback Period | 8.3 months | Benchmark: <12 months |
| Net LTV Profit Contribution | $76500.00 | LTV minus CAC |
Overview & Methodology
B2B enterprise SaaS operates with high Average Revenue Per Account ($1,000+ to $10,000+/month) and very low monthly logo churn (1% to 1.5%). Calculating LTV accurately helps finance teams justify large sales quotas and onboarding teams.
Mathematical Formulation
Enterprise LTV = (Monthly Contract Value × Gross Margin) / Monthly Churn. Net LTV Contribution = LTV - Sales CAC.Optimization Best Practices
Factor in Customer Success Manager (CSM) salaries into direct gross margin calculations.
Multi-year enterprise contracts (2–3 years) lock in minimum customer lifespan and protect against near-term churn.
Measure Net Revenue Retention (NRR) alongside logo churn to capture account expansion.
Frequently Asked Questions
Q.What is typical enterprise SaaS gross margin?
Enterprise SaaS typically achieves 80% to 85% gross margins after deducting AWS/Azure hosting and Level 1 support costs.
Q.How much is the LTV on a $1,200/mo account with 1.2% churn and 85% margin?
Monthly gross profit is $1,020. Divided by 0.012 churn, Customer LTV is $85,000.00.
Q.What sales CAC is reasonable for an $85,000 LTV?
At a 3.5x ratio, you can comfortably spend up to $24,285 in fully loaded sales and marketing expenses to acquire that customer.