Free Template

SaaS Financial Model Template

A comprehensive financial model designed for B2B SaaS companies. Covers the full ARR waterfall (new, expansion, contraction, churn), unit economics (CAC, LTV, payback), cohort analysis, and a five-year projection with fundraising scenarios.

What's included

Everything in this template

  • ARR waterfall (new, expansion, contraction, churn)
  • MRR to ARR conversion and tracking
  • Unit economics dashboard (CAC, LTV, LTV:CAC ratio, payback)
  • Customer cohort retention analysis
  • Five-year P&L with SaaS-specific line items
  • Fundraising scenario modelling with dilution

Template preview

See the structure

fx=Beginning_ARR + New_ARR + Expansion - Contraction - Churn
Metric
Year 1
Year 2
Year 3
ARR
£480k
£960k
£1.7M
Net New ARR
£480k
£480k
£740k
NRR
105%
112%
118%
CAC Payback
18 mo
14 mo
11 mo
LTV:CAC
2.8x
3.5x
4.2x

Step by step

How to use this template

1

Set customer acquisition assumptions

Enter expected new customer additions per month, average contract value, and sales cycle length. Factor in marketing spend to calculate CAC.

2

Model the ARR waterfall

For each month, the template tracks beginning ARR, adds new and expansion ARR, subtracts contraction and churn, and calculates ending ARR.

3

Build unit economics

Enter fully loaded CAC (marketing + sales costs / new customers) and gross margin. The template calculates LTV, LTV:CAC ratio, and payback period.

4

Add cohort retention curves

Enter monthly retention rates by cohort. The model uses these to project churn and expansion for each customer vintage.

5

Model fundraising scenarios

Add planned fundraising rounds with timing, amount, and valuation. The template calculates dilution and shows the cash runway under each scenario.

Watch out

Common mistakes to avoid

Confusing bookings with recognised revenue — ARR should reflect recurring contractual value

Using blended churn rates instead of modelling logo churn and revenue churn separately

Not accounting for ramp time when modelling new sales rep productivity

Ignoring professional services and one-time revenue when calculating unit economics

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FAQ

Frequently asked questions