Financial Model, Information Technology, SaaS

ARPU, Break-Even, DCF Model, Excel, Financial Feasibility, Financial Projections, Free Financial Model Templates, IRR, NPV, Payback Period, Startup Financial Models, Three Statement Model | Three Financial Statements, Valuation

The SaaS Financial Model provides a simple way to derive a 5-year financial plan for a Software as a Service (SaaS) internet company which can be used to derive a valuation and investor return. The Financial Model calculates DCF Value, Investor IRR, Breakeven, ARPU, Customer Lifetime Value and many more important key metrics to SaaS Businesses.

Highlights of the financial model template:

Executive Summary of key charts, key metrics, and key assumptions. Simply change the assumptions on the right and see immediately the effect on Subscribers, Revenues, Cash Flow, etc. on the left and their impact on key SaaS specific financial metrics
Monthly and Yearly financial projections for 5 years
Three tiers of subscription pricing (Basic, Standard, and Premium)
Discounts depending on payment terms (upfront) 1 year, 6 months or 3 months
Deferred revenue recognition model which can be switched on or off
Key Metrics
- Number of Subscribers
- Average Revenue Per Users (ARPU)
- Customer Lifetime Value (CLV)
- Monthly Recurring Revenues (MRR)
- Enterprise Value and Equity Value based on DCF Valuation
- Project IRR
- Required Funding
- Month when EBITDA breakeven is achieved
- Month when Payback of investment is achieved (based on Free Cash Flows)
Revenue Streams
- Subscription revenues
Costs Assumptions include
- Acquisition costs per subscribers
- Employee costs
- Webhosting and all other costs
Financial Statements (Monthly and Yearly) – Income Statement, Balance Sheet, Cash Flow Statement
Valuation of the SaaS Business via the Discounted Free Cash Flow (DCF) Analysis
Calculation of the Project IRR via Calculation of Free Cash Flow to Firm (FCFF)
Payback period (FCFF) and required months till EBITDA breakeven
Debt schedule which models two layers of financial debt (junior and senior debt) – if needed
Amortization schedule for software development costs
Fixed asset depreciation schedule
Forecast of all relevant financial ratios
Calculation of required funding amount
Investor return and expected profit calculation based on a cash in / cash out consideration
Print-friendly layout including charts and graphs

The Executive Summary page gives the investor a comprehensive overview of the business plan of a SaaS business backed up by a solid financial model. We hope you like our financial model template and it saves you valuable time while providing a solid basis for decision making.

See also the article how to build a SaaS financial model or the explainer video below:

Compared to the previous version, the model has been updated to now also include a section about investor returns and a switch to play around with revenue recognition accounting. The model is available in two versions:

PDF DEMO Version
Excel Model with all cells editable and all formulas visible

Filetypes:

.pdf (Adobe Acrobat Reader)

.xlsx (Microsoft Excel)

Executive Summary Page

Changing the key assumptions on the right allows you to immediately see the effect on the financials of your SaaS business on the left
Financial Ratios are immediately updated for your convenience

SaaS_Financial_Model_Template_Executive_Summary — SaaS Financial_Model_Template Executive Summary

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Reviews

Review title? wtf

By Manuel Afif on November 30, 2019 at 12:28

The excel is fine bur wouldve liked to have more info on how to fill each of the cells. I am doing a business model for school so im no expert. I woulve wanted to have someone explain me how to fill the model step by step.

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