176afc5c46
- SaaS metrics calculator (ARR, MRR, churn, CAC, LTV, NRR) - Quick Ratio calculator for growth efficiency - Unit economics simulator for 12-month projections - Industry benchmarks by stage/segment (OpenView, Bessemer, SaaS Capital) - 3 stdlib-only Python tools with CLI and JSON output - Complements financial-analyst skill for SaaS founders
2.4 KiB
SaaS Metric Formulas
Complete reference with worked examples for all metrics calculated by the SaaS Metrics Coach.
ARR (Annual Recurring Revenue)
ARR = MRR × 12
Example:
- Current MRR: $50,000
- ARR = $50,000 × 12 = $600,000
When to use: Quick snapshot of annualized revenue run rate. Not the same as actual annual revenue if you have seasonality or one-time fees.
MoM MRR Growth Rate
MoM Growth % = ((MRR_now - MRR_last) / MRR_last) × 100
Example:
- Current MRR: $50,000
- Last month MRR: $45,000
- Growth = (($50,000 - $45,000) / $45,000) × 100 = 11.1%
Interpretation:
- Negative = losing revenue
- 0-5% = slow growth (concerning for early stage)
- 5-15% = healthy growth
-
15% = strong growth (early stage)
Monthly Churn Rate
Churn % = (Customers lost / Customers at start of month) × 100
Example:
- Customers at start of month: 100
- Customers lost during month: 5
- Churn = (5 / 100) × 100 = 5%
Annualized impact: 5% monthly = ~46% annual churn (compounding effect)
Critical context: Churn tolerance varies by segment:
- Enterprise: >3% is critical
- SMB: >8% is critical
- Always confirm segment before judging severity
ARPA (Avg Revenue Per Account)
ARPA = MRR / Total active customers
CAC (Customer Acquisition Cost)
CAC = Total Sales & Marketing spend / New customers acquired
Example: $20k spend / 10 customers → CAC $2,000
LTV (Customer Lifetime Value)
LTV = (ARPA / Monthly Churn Rate) × Gross Margin %
Simplified (no gross margin data):
LTV = ARPA / Monthly Churn Rate
Example:
- ARPA: $500
- Monthly churn: 5% (0.05)
- Gross margin: 70% (0.70)
- LTV = ($500 / 0.05) × 0.70 = $7,000
Simplified (no margin): $500 / 0.05 = $10,000
Why it matters: LTV tells you the total revenue you can expect from an average customer. Must be at least 3x your CAC to have sustainable unit economics.
LTV:CAC Ratio
LTV:CAC = LTV / CAC
Example: LTV $10k / CAC $2k = 5:1
CAC Payback Period
Payback (months) = CAC / (ARPA × Gross Margin %)
Simplified: Payback = CAC / ARPA
Example: CAC $2k / ARPA $500 = 4 months
NRR (Net Revenue Retention)
NRR % = ((MRR_start + Expansion MRR - Churned MRR - Contraction MRR) / MRR_start) × 100
Simplified (no expansion data): NRR ≈ (1 - Revenue Churn Rate) × 100
Rule of 40
Score = Annualized MoM Growth % + Net Profit Margin %
Healthy: ≥ 40