checklistFinancial Modeling
SaaS Metrics Cheat Sheet
A one-page reference for the 15 most important SaaS metrics — definitions, formulas, and industry benchmarks. Keep this open during every investor conversation.
The 15 Metrics Every SaaS Founder Must Know
Investors fluent in SaaS will probe these numbers in every meeting. Know your numbers cold — and know the benchmarks.
Growth & Revenue
MRR (Monthly Recurring Revenue): Total predictable revenue billed monthly.
ARR (Annual Recurring Revenue): MRR × 12.
MRR Growth Rate: (This Month MRR − Last Month MRR) ÷ Last Month MRR × 100.
Benchmark: Top-quartile early-stage SaaS grows 15–20%+ MoM.
Retention & Churn
Gross Churn: Revenue lost from cancellations ÷ Total MRR at start of period.
Net Revenue Retention (NRR): (Starting MRR + Expansion − Churn) ÷ Starting MRR.
Benchmark: NRR > 100% is the holy grail — it means you grow even without new customers. >120% is world-class.
Customer Economics
CAC (Customer Acquisition Cost): Total sales & marketing spend ÷ New customers acquired.
LTV (Lifetime Value): ARPU ÷ Churn Rate (for subscription).
LTV:CAC Ratio: Target >3:1.
CAC Payback Period: CAC ÷ (ARPU × Gross Margin). Target <18 months for seed-stage SaaS.
Efficiency Metrics
Gross Margin: (Revenue − COGS) ÷ Revenue. Target 70–80%+ for SaaS.
Burn Multiple: Net Burn ÷ Net New ARR. <1 is great, >2 is a red flag.
Rule of 40: Growth Rate % + Profit Margin % > 40. A benchmark for balanced growth and profitability.
Engagement
DAU/MAU Ratio: Daily Active Users ÷ Monthly Active Users. Higher = stickier product.
Activation Rate: % of signups who reach a defined 'aha moment'.
Expansion MRR: Revenue from upsells, cross-sells, and seat expansion from existing customers.