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
104 lines
2.4 KiB
Markdown
104 lines
2.4 KiB
Markdown
# 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
|
||
```
|