SaaS Cockpit

MRR (Monthly Recurring Revenue) is the predictable revenue your SaaS generates every month from active subscriptions. It's the single most important metric for SaaS businesses because it shows the health and trajectory of your revenue engine. Investors, acquirers, and founders all track MRR as the primary measure of SaaS success.

A healthy LTV:CAC ratio is generally 3:1 or higher, meaning the lifetime value of a customer is at least 3 times what you spend to acquire them. Below 1:1 means you're losing money on every customer. Between 1:1 and 3:1 suggests you need to improve retention or reduce acquisition costs. Above 5:1 might mean you're under-investing in growth.

Runway is calculated by dividing your cash in bank by your monthly net burn rate (expenses minus revenue). If you're spending $5,000/month and earning $2,000/month, your burn rate is $3,000/month. With $30,000 in the bank, you have 10 months of runway. When your MRR exceeds expenses, you technically have infinite runway.

Ramen profitability is the point where your SaaS generates enough revenue to cover your basic living expenses (typically around $5,000/month for a solo founder). It's a critical milestone because it means you can sustain yourself indefinitely without external funding, giving you the freedom to grow at your own pace.

These projections model steady-state growth with constant growth and churn rates. Real SaaS growth is rarely this smooth -- you'll experience seasonal variation, marketing campaigns, product launches, and other factors. Use these numbers as a directional guide for planning, not as a precise forecast. The key value is understanding how growth rate, churn, and expenses interact.