SaaS Metrics: The Complete Guide
Master the key metrics that drive SaaS success. Learn to measure MRR, CAC, LTV, churn, and unit economics to make decisions for your software business.
Revenue Metrics
4 metrics explained
Growth Metrics
4 metrics explained
Retention Metrics
4 metrics explained
Market Metrics
4 metrics explained
Unit Economics
4 metrics explained
SaaS Metrics Quick Reference
| Metric | Formula | Good Benchmark |
|---|---|---|
| LTV:CAC Ratio | Customer Lifetime Value ÷ Customer Acquisition Cost | 3:1 or higher |
| Monthly Churn | Lost Customers ÷ Starting Customers × 100 | <5% (B2B), <7% (B2C) |
| CAC Payback | CAC ÷ (ARPU × Gross Margin) | <12 months |
| Net Revenue Retention | (MRR + Expansion - Contraction - Churn) ÷ Starting MRR | >100% |
| Rule of 40 | Growth Rate + Profit Margin | >40% |
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