SaaS Metrics Cheatsheet
saasly.app/cheatsheet
Unit Economics
| Metric | Formula | Healthy band | Watch out |
|---|---|---|---|
| LTV (Customer Lifetime Value) | (ARPU × Gross Margin %) ÷ Monthly Churn | Depends on CAC | Use gross-margin-adjusted LTV — naive overstates by 15–30% |
| CAC (Customer Acquisition Cost) | Total S&M Spend ÷ New Customers Acquired | Recovered within 12 months | Track by channel — averages hide bad channels |
| LTV:CAC Ratio | LTV ÷ CAC | 3:1 minimum, 3–5 healthy, 5–7 strong | <1 critical (pause spend), >7 may indicate under-investing |
| Payback Period | CAC ÷ (ARPU × Gross Margin %) | ≤7 months ideal, ≤12 months max | >12 = anemic; front-load annual contracts |
| Magic Number | (Net New ARR × 4) ÷ Prior Q S&M Spend | >1 = invest more in S&M | <0.5 = GTM model is broken |
Retention
| Metric | Formula | Healthy band | Watch out |
|---|---|---|---|
| Customer Churn (monthly) | Customers Lost ÷ Customers at Start × 100 | <2% (Skok) | >2% signals fundamental issue |
| Revenue Churn (monthly) | Churned MRR ÷ Starting MRR × 100 | <2% (Skok) | 1 large account ≠ 9 small ones — track separately from customer churn |
| NRR (Net Revenue Retention) | (Start + Expansion − Contraction − Churned) ÷ Start × 100 | >100% = negative churn; 110–130% best-in-class | <90% = leak exceeds expansion |
| GRR (Gross Revenue Retention) | (Start − Churned − Contraction) ÷ Start × 100 | 85%+ healthy, 95%+ best-in-class | Capped at 100% — strips expansion to show real retention floor |
Growth Efficiency
| Metric | Formula | Healthy band | Watch out |
|---|---|---|---|
| Quick Ratio | (New MRR + Expansion MRR) ÷ (Churned + Contraction MRR) | >4 = efficient growth (Mamoon Hamid) | <1 = losing more than adding |
| Rule of 40 | Growth Rate % + Profit Margin % | ≥40% combined | <20% = balance growth vs. profitability |
| Gross Margin | (Revenue − COGS) ÷ Revenue × 100 | 75–85% typical SaaS | <70% suggests pricing or COGS problem |
Funnel & Engagement
| Metric | Formula | Healthy band | Watch out |
|---|---|---|---|
| Trial → Paid Conversion | Paid Conversions ÷ Trial Starts × 100 | 15–20% B2B SaaS PMF signal | <15% = fix paywall + onboarding before scaling acquisition |
| Activation Rate | Activated Users ÷ Signups × 100 | 20–40% typical | Define 'activated' specifically — first meaningful action |
| DAU/MAU Ratio | Daily Active Users ÷ Monthly Active Users × 100 | 20–30%+ = habit-forming | <10% = low daily stickiness |
Sources: David Skok (forentrepreneurs.com), Adapty, OpenView, ChartMogul. Numbers are healthy bands for B2B SaaS; mobile subscription and other categories vary. Full benchmark library by industry and stage at saasly.app/benchmarks.
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