Financial Calculations & Valuation Beginner

SaaS & D2C Unit Economics Calculator (MRR, Churn, LTV:CAC & Payback Months) in Python

Compute Monthly Recurring Revenue (MRR), Customer Lifetime Value (LTV), LTV:CAC ratio, and CAC Payback Period for startups and D2C brands in Python.

#pandas#numpy

Problem Statement

Founders and VC analysts need to verify whether customer acquisition costs (CAC) are recovered within 12 months and whether Gross-Margin-adjusted LTV exceeds 3x CAC.

Formula / Core Logic

LTV = (ARPU * Gross_Margin_Pct) / Monthly_Churn_Rate CAC_Payback_Months = CAC / (ARPU * Gross_Margin_Pct)

Installation

pip install pandas numpy

saas-unit-economics-ltv-cac-churn-mrr-cohort-python.py

def calculate_unit_economics(arpu_monthly, gross_margin_pct, monthly_churn_pct, cac):
    gm = gross_margin_pct / 100.0
    churn = monthly_churn_pct / 100.0
    
    monthly_gross_profit = arpu_monthly * gm
    ltv = monthly_gross_profit / churn if churn > 0 else 0.0
    ltv_cac_ratio = ltv / cac if cac > 0 else 0.0
    payback_months = cac / monthly_gross_profit if monthly_gross_profit > 0 else 0.0
    
    return {'Customer_LTV': round(ltv, 2), 'LTV_to_CAC_Ratio': round(ltv_cac_ratio, 2), 'CAC_Payback_Months': round(payback_months, 1), 'Healthy_Unit_Economics': ltv_cac_ratio >= 3.0}

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Frequently Asked Questions

Q: Why must LTV be multiplied by Gross Margin %?

Using raw revenue in LTV overstates customer value by ignoring COGS, payment gateway fees, and server/fulfillment costs.