A Guide to SaaS Metrics (and How to Calculate Them)

A Guide to SaaS Metrics (and How to Calculate Them)

Look, let's cut through the metrics BS. While everyone else is chasing vanity metrics and playing spreadsheet Olympics, let's focus on the numbers that actually fill your bank account.

Marketing Metrics That Move the Money

1. Customer Acquisition Cost (CAC) - Your Reality Check Number

Here's the brutal truth: Most founders are lighting cash on fire because they don't know their real CAC. Stop guessing and start measuring.

The Truth Formula:

CAC = (Total Sales + Marketing Spend) / New Customers

Real Talk: If your CAC payback period is over 12 months, you're not scaling.

2. Customer Lifetime Value (CLV) - Your "Will This Actually Work?" Number

Let's get real: If your CLV isn't at least 3x your CAC, you're running a charity, not a business. Time to face the music.

The Money Formula:

CLV = (Average Purchase × Purchase Frequency) × Customer Lifespan

Insider Secret: The companies crushing it? They're hitting 5x or better.

SaaS Metrics That Separate Winners from Wannabes

1. Monthly Recurring Revenue (MRR) - The Only Number That Never Lies

Stop obsessing over total users or website traffic. MRR is your oxygen supply. If it's not growing, you're dying.

The Reality Check Formula:

MRR = Active Customers × Average Revenue Per User

Pro Tip: Track expansion MRR separately - it's often the hidden growth lever everyone misses.

2. Net Revenue Retention (NRR) - Your Growth Truth-Teller

Under 100%? You're on a treadmill - running fast but going nowhere. The SaaS companies crushing it are hitting 120%+ without breaking a sweat.

The Success Formula:

NRR = [(End MRR - Churn) / Starting MRR] × 100

Stop Making This Harder Than It Needs to Be

Look, you don't need fancy enterprise software to get started. Head over to Metric Agent for free calculators that'll give you these numbers without the spreadsheet headaches. No signup required, just straight-up useful tools.

Level Up Your Whole Stack

Ready to go beyond basic metrics? Check out our hand-picked directory of SaaS tools that actually deliver ROI. It's like having a growth team in your pocket, minus the expensive coffee habits.

The Bottom Line

Here's the deal: These metrics aren't sexy, but neither is going out of business. Stop flying blind and start measuring what matters. Your bank account (and your investors) will thank you.

Back to blog

Stories for Startups

Get Smarter Every Week - We Send You Cool Stories About People Making Money.

Stop anytime.