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Pitch Deck Metrics Calculator

Calculate the key metrics investors want to see: LTV/CAC, burn multiple, and Rule of 40. Enter values for instant results with step-by-step formulas.

Reviewed by Daniel Agrici, Founder & Lead Developer

Reviewed by Daniel Agrici, Founder & Lead Developer

Formula

LTV/CAC = Lifetime Value / Acquisition Cost | Burn Multiple = Net Burn / Net New ARR | Rule of 40 = Growth% + Margin%

LTV/CAC measures unit economics efficiency. Burn multiple evaluates capital efficiency in generating new revenue. Rule of 40 balances growth and profitability. Together these three metrics give investors a comprehensive view of startup health.

Worked Examples

Example 1: Series A SaaS Metrics Evaluation

Problem:A SaaS startup has $1.2M ARR, $2,400 LTV, $600 CAC, $80K monthly burn, $50K net new ARR/month, 75% gross margin, and 100% YoY revenue growth.

Solution:LTV/CAC: $2,400 / $600 = 4.0x (Excellent, above 3x threshold)\nBurn Multiple: $80,000 / $50,000 = 1.6x (Acceptable)\nRule of 40: 100% growth + 75% margin = 175 (well above 40)\nMagic Number: ($50K x 12) / ($80K x 12) = 0.63\nMRR: $1.2M / 12 = $100K\nNet Burn: $80K - $100K = -$20K (cash flow positive!)

Result:LTV/CAC: 4.0x Excellent | Burn Multiple: 1.6x | Rule of 40: 175 (Pass)

Example 2: Pre-Seed Company with Growth Focus

Problem:Pre-seed startup: $120K ARR, $1,200 LTV, $400 CAC, $40K monthly burn, $15K net new ARR/month, 65% gross margin, 300% YoY growth.

Solution:LTV/CAC: $1,200 / $400 = 3.0x (Good)\nBurn Multiple: $40,000 / $15,000 = 2.67x (High, needs improvement)\nRule of 40: 300% + 65% = 365 (far exceeds 40)\nMagic Number: ($15K x 12) / ($40K x 12) = 0.38 (below 0.5)\nNet Burn: $40K - $10K MRR = $30K/month

Result:LTV/CAC: 3.0x Good | Burn Multiple: 2.67x High | Rule of 40: 365 (Pass)

Frequently Asked Questions

How should startups present ARR milestones in their pitch deck?

ARR milestones should be presented in a clear timeline showing month-by-month or quarter-by-quarter progression, highlighting key inflection points. Common milestone markers that resonate with investors include the first $100K ARR (initial traction), $1M ARR (product-market fit validation), $5M ARR (scalable go-to-market), $10M ARR (Series B readiness), and $20M+ ARR (growth-stage metrics). Present the time taken to reach each milestone, as acceleration between milestones demonstrates improving efficiency. Show how growth compounds by displaying both the absolute ARR and the growth rate at each milestone. Including the number of customers at each milestone alongside revenue provides context about whether growth comes from new customer acquisition or expansion revenue.

What is net revenue retention and why is it critical for pitch decks?

Net revenue retention (NRR) measures the revenue from existing customers compared to the same customers one year ago, including expansion, contraction, and churn. An NRR of 120% means existing customers generate 20% more revenue than last year without any new customer acquisition. Top SaaS companies like Snowflake and Twilio achieve NRR above 130%, while the median for publicly traded SaaS companies is approximately 110%. NRR above 100% is critical because it means the company grows even if it stops acquiring new customers entirely. Investors consider NRR one of the most important predictive metrics because it reflects product stickiness, pricing power, and expansion potential. Companies with NRR below 90% face a significant headwind where they must constantly replace lost revenue before they can grow.

References

Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy