Unit Economics & Burn Multiple Calculator

Analyze growth efficiency and capital efficiency metrics

Revenue Metrics

Your SaaS revenue data

Annual Recurring Revenue (ARR)

Net New ARR (Monthly)

New ARR added minus churned ARR per month

ARPU - Monthly ($)

Gross Margin (%)

Cost Metrics

Your spending and acquisition costs

Monthly Net Burn ($)

Monthly expenses minus revenue

Customer Acquisition Cost (CAC)

Monthly Churn Rate (%)

Key Metrics

Your unit economics and efficiency

Burn Multiple

0.80x

Excellent

Highly efficient growth!

LTV:CAC Ratio

5.00:1

✓ Excellent

Customer LTV

$2,500

Lifetime profit per customer

Detailed Analysis

Comprehensive unit economics breakdown

Revenue Metrics

Current ARR $1,200,000

Monthly Net New ARR $100,000

Monthly Revenue (MRR) $100,000

Gross Profit (Monthly) $75,000

Efficiency Metrics

Monthly Burn $80,000

CAC $500

LTV $2,500

Burn Multiple 0.80x

Formula Breakdown:

• Burn Multiple = $80,000 burn ÷ $100,000 net new ARR = 0.80x

• LTV = ($100 ARPU × 75% margin) ÷ 3% churn = $2,500

• LTV:CAC = $2,500 ÷ $500 = 5.00:1

Burn Multiple Benchmarks

Capital efficiency standards

Less than 1x

Spending less than $1 to generate $1 of ARR

✓✓ Excellent

1x - 1.5x

Good capital efficiency

✓ Good

1.5x - 2x

Acceptable for high-growth companies

⚠ Fair

Above 2x

Inefficient - need to improve unit economics

❌ Poor

About Unit Economics & Burn Multiple

Burn Multiple measures how much you're spending (burning) to generate each dollar of net new ARR. A lower burn multiple indicates more efficient growth.

Unit Economics combine LTV, CAC, gross margin, and churn to evaluate if each customer is profitable and sustainable at scale.

Why it matters: These metrics help you understand capital efficiency and whether your growth is sustainable. Investors closely watch burn multiple and unit economics when evaluating SaaS companies.