SaaS Financial Model, built in Causal
Originally published: 15/06/2020 16:47
Last version published: 15/06/2020 18:44
Publication number: ELQ-39921-2
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SaaS Financial Model, built in Causal

Model a SaaS or subscription business using key inputs for growth, churn, and more to create probabilistic forecasts.

Build a web-based model for your SaaS or subscription business using key business assumptions as inputs (future growth rate, churn rates, acquisition costs, etc.), and builds out a full set of SaaS metrics (MRR, LTV, etc.) forecasted into the future.

Model Highlights
- The model is built in Causal, a web-based platform for building dynamic financial models.
- The model uses range-based assumptions for growth rates, churn rates, average revenue, and more to create probability-based distributions of MRR, revenues, LTV, and other performance metrics, monthly.
- By default the model is built for a monthly contract and revenue cycle, so it's a good fit for consumer and small-medium business (SMB) without the need for edits. The model can be edited to use contract cycles other than one month (e.g. quarterly, annual, semi-annual) simply by using Causal's natural-language based formulas.
- The model's timescale is dynamic, and can be adjusted to be monthly, quarterly, or annual, and the length can also be edited to extend for any time period.
- Optionally, link to Stripe, Google Sheets or Google Ads to automatically pull in continuously-updated historical data and let the model use past data to forecast the future.
- Model results can be exported to Excel or Google Sheets for any additional analysis and presentation, and can be linked to Google Sheets for updating and use with other models
- Embed your model in Notion, Medium, Quora, and basically anywhere else that allows embedding.

How to use
- Access the model by downloading the .txt file and copy and pasting the link into your web-browser.
- Click on a variable in the Inputs section and change its value to see the rest of the model update.
- Many Inputs are ranges, allowing you to input a range of potential values for your assumption, and the model will show a distribution of the outputs based on the ranges in your inputs.
- To modify, edit, or save a version of the model to your own account, click Clone Model (top-right) to create a fully-customizable copy that you can use for your own business.

Edit Anything
Edit anything; all cells and formulas are unlocked for editing and transparency, add on or edit for your specific situation.

Personal Support
- Live chat or email support anytime.
- Built by a professional financial modeler with 20 years of experience as an investor and running forecasting inside startups. Responsive, personal support — chat, call, or email — and available for custom services.

This Best Practice includes
1 customizable model in Causal

Taylor Davidson offers you this Best Practice for free!

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Further information

Create a model for a SaaS business assuming a monthly subscription length, using range-based inputs to create a probabilistic forecast of key performance metrics. Model is built in Causal, a web-based platform for financial modeling.

Consumer SaaS, small-medium business (SMB) SaaS, monthly recurring subscription businesses

Contract (churn, billings, etc.) cycles longer than one month (e.g. quarterly, annual or semi-annual) will require edits.



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