The 28 SaaS metrics that actually matter, with the formula and the benchmark for each.
Read every metric below for free. The downloadable pack adds the calculation templates, the dashboard layout we use internally, and a person-level adjustment for each metric where session-based data quietly distorts the number.
Revenue + Growth5 metrics
MRR (Monthly Recurring Revenue)
Formula
Sum of recurring monthly billings
Benchmark
Track MoM growth %, target 8-15% MoM at seed stage
Exclude one-time fees, setup charges, and discounts. Use committed MRR for forward visibility.
ARR (Annual Recurring Revenue)
Formula
MRR × 12
Benchmark
$1M ARR at Series A, $10M at Series B median (2026)
Industry-standard for SaaS valuation. Annualizes current MRR run rate.
Net Revenue Retention (NRR)
Formula
(Starting MRR + Expansion − Churn − Downgrades) / Starting MRR
Benchmark
> 110% is strong, > 130% is best-in-class
The single best predictor of long-term growth. Above 100% means expansion outpaces churn.
Gross Revenue Retention (GRR)
Formula
(Starting MRR − Churn − Downgrades) / Starting MRR
Benchmark
> 90% is healthy
Excludes expansion. Shows how well you retain what you already had.
Rule of 40
Formula
Growth Rate % + Profit Margin %
Benchmark
Sum should be ≥ 40 for healthy SaaS
Balances growth and profitability. High-growth unprofitable companies can score well, as can mature profitable ones.
Customer Economics5 metrics
CAC (Customer Acquisition Cost)
Formula
Total Sales + Marketing Spend / New Customers
Benchmark
Highly vertical-dependent. SMB: $200-1,000. Mid-market: $5,000-25,000
Include fully-loaded marketing + sales costs. Exclude existing-customer expansion costs.
LTV (Customer Lifetime Value)
Formula
(ARPA × Gross Margin %) / Customer Churn Rate
Benchmark
Should be 3x+ CAC
Use gross-margin-adjusted ARPA, not raw revenue. Person-level data improves accuracy by 20-40%.
LTV:CAC Ratio
Formula
LTV / CAC
Benchmark
3:1 healthy, 5:1+ best-in-class
Below 1:1 means each customer loses you money. Above 6:1 likely means you are underinvesting in growth.
CAC Payback Period
Formula
CAC / (Average MRR per Customer × Gross Margin %)
Benchmark
< 12 months strong, < 6 months elite. Median 2026: 15 months
How long until a customer is profitable. Critical for cash-strapped startups.
ARPA (Average Revenue Per Account)
Formula
Total MRR / Total Customers
Benchmark
Set targets by ICP, not industry average
Track by customer cohort. Rising ARPA usually indicates upmarket movement.
Engagement + Retention6 metrics
MAU (Monthly Active Users)
Formula
Unique users with qualifying activity in 30 days
Benchmark
Definition matters more than the number. Define "active" precisely
Be specific about what counts as activity. Logging in is not the same as using a core feature.
DAU (Daily Active Users)
Formula
Unique users with qualifying activity per day
Benchmark
For workplace tools, DAU/MAU > 50% is sticky
Compare to MAU to get the DAU/MAU stickiness ratio.
DAU/MAU Ratio (Stickiness)
Formula
DAU / MAU
Benchmark
> 20% = high engagement, > 50% = daily-habit product
Slack, Zoom, Notion sit at 50%+. Most B2B SaaS sits at 15-25%.
Customer Churn Rate
Formula
Customers Lost / Customers at Period Start
Benchmark
< 3% monthly excellent, > 7% concerning
For annual contracts: < 10% yearly is best-in-class.
Revenue Churn Rate
Formula
MRR Lost / Starting MRR
Benchmark
Should be lower than customer churn (smaller customers churn first)
Reveals whether you are losing your big or small accounts.
Activation Rate
Formula
Users completing key first-action / Signups
Benchmark
Wildly product-dependent. Define your "aha moment" and measure ruthlessly
The single biggest lever in PLG. Doubling activation often unblocks growth more than doubling traffic.
Funnel + Conversion5 metrics
Lead-to-Customer Conversion Rate
Formula
New Customers / New Leads
Benchmark
B2B SaaS: 2-5%. PLG: 5-15%
Segment by lead source — paid converts very differently from organic content.
Trial-to-Paid Conversion
Formula
Trials Converted / Trials Started
Benchmark
15-25% with credit card upfront, 5-12% reverse-trial
Aggressively segment by activation status — non-activated trials almost never convert.
Free-to-Paid Conversion
Formula
Free Users Upgrading / Total Free Users
Benchmark
1-5% for freemium SaaS
Time-to-convert matters more than absolute rate. Most upgrades happen in first 30 days.
Free-to-Paid Cycle Length
Formula
Median Days from Signup to First Payment
Benchmark
Highly product-dependent
Longer than 90 days usually means freemium is your acquisition channel, not your conversion engine.
Demo-to-Customer Conversion
Formula
Closed-Won Demos / Demos Held
Benchmark
15-30% healthy for outbound, 25-40% for inbound
Inbound demos convert far higher because intent is established.
Product + Quality3 metrics
NPS (Net Promoter Score)
Formula
% Promoters (9-10) − % Detractors (0-6)
Benchmark
> 30 good, > 50 excellent
Survey at consistent touchpoints. Compare same-stage cohorts, not blended.
CSAT (Customer Satisfaction)
Formula
Avg Satisfaction Score / Max Possible
Benchmark
> 80% is healthy
Measure right after support interactions or feature use, not periodically.
Time to Value (TTV)
Formula
Median time from signup to first valuable action
Benchmark
For SaaS tools: under 1 day for PLG, under 1 week for managed
The most actionable activation metric. Shorter TTV correlates strongly with retention.
Sales + Pipeline4 metrics
Pipeline Coverage Ratio
Formula
Open Pipeline Value / Quota
Benchmark
3-4x for B2B sales orgs
Below 3x means you will likely miss quota.
Sales Cycle Length
Formula
Avg Days from Opportunity Created to Closed
Benchmark
Highly ACV-dependent. $1K/mo: 30 days. $50K/mo: 90+ days
Lengthening cycles are early signal of either market or sales process issues.
Quota Attainment
Formula
% of reps at or above quota
Benchmark
60-70% is industry healthy
Above 80% suggests quotas are too soft. Below 50% suggests too aggressive.
Win Rate
Formula
Closed Won / (Closed Won + Closed Lost)
Benchmark
20-30% inbound, 10-15% outbound
Diagnose lost reasons. Loss to "no decision" indicates qualification problems.
Get the full pack as a Notion template
All 28 metrics with editable Notion formulas, dashboard layouts you can copy into your workspace, and the person-level adjustment notes for each one. Plus the cohort-analysis spreadsheet template we use internally.