B2B & Startup Economics

Business & SaaS Calculators

Grow with precision. Calculate your startup's runway, optimize your LTV:CAC ratio, and model your profitability with clinical-grade business tools.

SaaS & Subscription Economics

Profitability & Pricing

Startup & Fundraising

Marketing & E-Commerce

Operations & Hiring

B2B & Startup Rules of Thumb

The Rule of 40

A core SaaS valuation metric. A company's year-over-year revenue growth rate plus its EBITDA profit margin should equal or exceed 40%.

12-Month CAC Payback

Ideally, a startup should recover the cost of acquiring a customer (CAC) within 12 months. This ensures rapid cash flow recycling to fund further growth.

The 3:1 LTV Ratio

If your Lifetime Value (LTV) is less than 3x your CAC, you are spending too much to acquire customers. If it is over 5x, you are likely under-investing in marketing.

Financial & Investment Disclaimer

The startup metrics and calculations provided are for educational and financial modeling purposes only. Metrics like ESOP valuation and dilution are highly dependent on specific term sheets, liquidation preferences, and cap table structures. Always consult a corporate attorney or fractional CFO before issuing equity or executing funding rounds.

Frequently Asked Questions

What is a good LTV:CAC ratio for a SaaS company?
The industry gold standard for a healthy SaaS business is an LTV:CAC ratio of 3:1 or higher. This means that for every $1 you spend acquiring a customer (CAC), you receive at least $3 in Customer Lifetime Value (LTV). Anything below 1:1 means you are losing money on every new customer.
What is Net Revenue Retention (NRR) and why does it matter?
NRR measures the percentage of recurring revenue retained from existing customers over a given period, including expansions, downgrades, and churn. An NRR over 100% means your business can grow without acquiring any new customers. Top-tier public SaaS companies often have NRR rates above 120%.
How do you calculate startup runway?
Your runway is simply your current cash balance divided by your monthly net burn rate (total cash out minus total cash in). If you have $500,000 in the bank and you are burning $50,000 net per month, you have 10 months of runway before you run out of cash or need to raise funding.