Home/Tools/BUE Calculator

Inputs

ARPU / month

Average Revenue Per User per month

Gross Margin

Revenue minus cost of goods / hosting

Monthly Churn Rate

% of customers lost each month

Customer Acquisition Cost

NRR inputs

MRR — start of period

MRR — expansion

Upsells + upgrades

MRR — churned

Downgrades + cancellations

Metrics

LTV : CAC Ratio

3.5x

HealthyTarget ≥ 3x · Warning 1–3x

Customer LTV

$1,750

ReferenceBased on ARPU × GM ÷ churn

CAC Payback Period

14.3 mo

WatchTarget < 12 mo · Watch 12–24 mo

Net Revenue Retention

102.0%

WatchTarget > 100% · Best-in-class > 120%

Benchmarks based on Lenny Rachitsky, a16z, SaaStr, and industry averages. Use as directional guidance — healthy ranges vary by stage, sector, and market.