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SaaS Metrics Cheat Sheet

This document defines key SaaS metrics used to measure the performance and health of a SaaS business. It provides the formulas to calculate monthly recurring revenue, customer lifetime value, customer acquisition cost, churn rates, average revenue per user, and other important metrics. Maintaining and improving these metrics helps SaaS companies optimize revenue, reduce costs, and improve customer retention.

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Joe Wira
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137 views8 pages

SaaS Metrics Cheat Sheet

This document defines key SaaS metrics used to measure the performance and health of a SaaS business. It provides the formulas to calculate monthly recurring revenue, customer lifetime value, customer acquisition cost, churn rates, average revenue per user, and other important metrics. Maintaining and improving these metrics helps SaaS companies optimize revenue, reduce costs, and improve customer retention.

Uploaded by

Joe Wira
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SAAS METRICS

CHEAT SHEET

www.buildamicrosaas.com
Monthly Recurring Revenue (MRR):

MRR represents the total recurring revenue generated by your


SaaS business on a monthly basis.

Formula: Total recurring revenue at the end of the month

Customer Lifetime Value (CLTV):

CLTV estimates the total revenue a customer is expected to


generate over their lifetime with your SaaS product or service.

Formula: Average Revenue per Account (ARPA) / Churn Rate


ARPA is the average revenue generated per account, and
Churn Rate is the rate at which customers are lost.

Customer Acquisition Cost (CAC):

CAC calculates the average cost incurred in acquiring a new


customer, including sales and marketing expenses.

Formula: Sales and Marketing Expenses / Number of New


Customers Acquired
User Churn:

User Churn measures the percentage of customers lost during a


specific period compared to the total number of customers at the
start of that period.

Formula: (Number of churned customers during the period /


Number of customers at the start of the period) x 100

Revenue Churn:

Revenue Churn calculates the percentage of revenue lost due to


churn (canceled subscriptions) during a period, adjusted for
expansion revenue.

Formula: ((Churned MRR - Expansion MRR) / Starting MRR) x 100

Churned MRR is the revenue lost due to churn during the period,
and Expansion MRR is the revenue gained from upsells and cross-
sells.
Churn Rate:

Churn Rate measures the percentage of customers lost during


a specific period compared to the total number of customers.

Formula: Number of Customers Lost / Total Number of


Customers

Customer Retention Rate:

Customer Retention Rate shows the percentage of customers


retained over a specific period.

Formula: (1 - Churn Rate) x 100

Average Revenue per Account (ARPA):

ARPA calculates the average revenue generated per customer


account.

Formula: Total Revenue / Total Number of Customers


Customer Satisfaction Score (CSAT):

CSAT measures the satisfaction level of your customers by


calculating the percentage of satisfied customers based on
the total number of respondents.

Formula: (Number of Satisfied Customers / Total Number of


Respondents) x 100

Monthly Active Users (MAU):

MAU represents the total number of unique users who engage


with your SaaS product or service in a given month.

Net Promoter Score (NPS):

NPS measures customer loyalty and satisfaction by


categorizing customers as Promoters, Passives, or Detractors
and calculating the difference between the percentage of
Promoters and Detractors.
Average Revenue per User (ARPU):

ARPU measures the average revenue generated by each active


user of your SaaS product.

Formula: ARPU = Total Revenue / Total Number of Active Users

Customer Acquisition Rate:

Customer Acquisition Rate calculates the rate at which new


customers are acquired.
Formula: Customer Acquisition Rate = Number of New
Customers / Total Number of Users

Customer Lifetime Value to Customer Acquisition Cost Ratio


(CLTV:CAC):

CLTV:CAC Ratio compares the value a customer brings over


their lifetime to the cost of acquiring that customer.

Formula: CLTV:CAC Ratio = Customer Lifetime Value /


Customer Acquisition Cost
Annual Run Rate (ARR):

ARR estimates the annualized version of Monthly Recurring


Revenue (MRR), providing a projection of revenue over a year.

Formula: ARR = MRR x 12

Expansion Revenue:

Expansion Revenue shows the net revenue gained from upsells


and cross-sells after accounting for revenue lost from
customer churn.

Formula: Expansion Revenue = Revenue from Upsells and


Cross-sells - Churned Revenue

Customer Engagement Rate:

Customer Engagement Rate measures the percentage of


customers actively engaging with your product.

Formula: Customer Engagement Rate = (Number of Engaged


Customers / Total Number of Customers) x 100
Gross Profit Margin:

Gross Profit Margin assesses the profitability of your SaaS


business by measuring the percentage of revenue remaining
after deducting the cost of goods sold.

Formula: Gross Profit Margin = (Total Revenue - COGS) / Total


Revenue

Customer Success Index (CSI):

CSI evaluates the success rate of customer outcomes or goals


achieved through interactions with your product or service.

Formula: CSI = (Number of Successful Customer Outcomes /


Total Number of Customer Interactions) x 100

Payback Period:

Payback Period indicates the length of time required to recoup


the customer acquisition cost through monthly gross margin.

Formula: Payback Period = Customer Acquisition Cost /


Monthly Gross Margin

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