SaaS ROI Deal Analyzer

What this tool does

Calculates LTV, CAC payback months, and ROI for SaaS. You enter CAC, ARPA, gross margin, and churn. Sensitivity shows impact of changing CAC, ARPA, or churn. If payback is over 6 months, fix CAC, raise ARPA, or reduce churn. Not financial advice. Not AI-powered.

When to use it

• Evaluating SaaS unit economics before scaling spend
• Checking if CAC payback is acceptable (under 6 months is often a target)
• Running sensitivity on churn or ARPA to see which lever matters most

Inputs explained

• CAC – Customer acquisition cost. See CAC.
• ARPA – Average revenue per account per month. See ARPA.
• Gross margin % – Revenue minus direct costs. See gross margin.
• Churn % – Monthly churn. See churn.

How to use it

1. Enter CAC, ARPA, gross margin, churn. Optionally set initial customers and months.
2. Click Calculate. Review LTV, payback, ROI, and sensitivity.

Common mistakes

• Using revenue instead of gross margin for LTV
• Ignoring churn (small changes in churn have big impact on LTV and payback)

Use it with AI

This tool is not AI-powered. It is a calculator. You can use the results with an AI assistant in these ways:

• Paste the LTV, payback, and ROI and ask for a one-page memo on whether to scale or fix unit economics.
• Ask an AI to suggest 5 actions if payback is over 6 months (e.g. reduce CAC, improve retention).
• Use the AI Toolkit and Founder Ops AI Workflow or Vendor Eval Scorecard for deal and vendor workflows.

Explore the AI Toolkit and Vendor Eval Scorecard for more.

Related tools

• Break-even Calculator
• Burn Rate / Runway Calculator
• Deal Teaser Analyzer

Related glossary terms

• CAC
• LTV
• Churn
• Gross margin
• CAC payback period
• ROI
• ARPA

FAQ

What is a good payback?

Under 3 months green; 3 to 6 yellow; over 6 red.

What is LTV?

Lifetime value. ARPA times gross margin times average lifetime (1/churn in months).

Is this financial advice?

No. Use for directional analysis.