Calculating Average Revenue Per User (ARPU)
[ARPU] = [MRR (end of month)] / [# of Subscribers (end of month)]
Make sure you have “normalized” the subscription plans where the subscription period is longer than one month. 1 year plan should be divided into 12 months.
Calculating Gross Margin % (GM%)
Gross Margin is revenue minus the all cost related to developing and maintaining the product as shown below:
Support, maintenance and development cost are cost related to the product development, including product owners, testers and any external testing costs. Support does NOT include Customer Support by only IT support. Licensing includes workstations and software licensing for IT and any internal servers etc.
CLV = ARPU X [Gross Margin %] / [MRR churn rate]
So there you go.
There are plenty of great SaaS tools that integrate to almost any payment provider, like Stripe, PayPal etc. and provide you with insight to your Annual Recurring or Monthly Recurring Revenue and Churn.
I can recommend Baremetrics.
But … When it comes to metrics that rely on your cost, cost ratios and margins, the calculation and monitoring falls on you, or your CFO, to keep track based on your accounting data.
I have set this up on dashboards using Google Sheets or Power BI so all metrics are always visible for the team.