Unit Economics India.
Know exactly where you stand.

LTV (Lifetime Value) = Average Revenue Per Account (ARPA) × Gross Margin % ÷ Monthly Churn Rate. Example: ₹10,000 ARPA/month × 70% GM ÷ 2% monthly churn = ₹350,000 LTV. For businesses with variable tenure, use average customer lifespan instead: LTV = ARPA × GM × Average Customer Lifespan in months.

CAC payback benchmarks: Under 12 months — excellent, indicates efficient go-to-market; 12–18 months — acceptable for B2B SaaS with good retention; 18–24 months — borderline, workable if NRR is above 110%; Above 24 months — problematic for most investor profiles, requires exceptional retention and expansion to justify.

NRR measures how much revenue grows from your existing customer base, accounting for expansion (upsells, cross-sells), contraction (downgrades), and churn. NRR above 100% means existing customers are growing their spend faster than others are churning — the business grows even without new customer acquisition. For B2B SaaS, NRR above 120% is world-class. Below 90% is a serious signal that the product is losing fit with existing customers.

Burn multiple = Net Cash Burned ÷ Net New ARR Added. A burn multiple of 1 means you spend ₹1 to generate ₹1 of ARR — efficient. A burn multiple of 3 means you spend ₹3 per ₹1 of ARR — capital-inefficient. Post-2022, investors have shifted focus from growth at all costs to capital efficiency. Burn multiple below 1.5 is considered good; above 2 raises questions; above 3 is a concern for most institutional VCs.