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SaaS Metrics
A living document of common SaaS Metrics definitions
SaaS Metrics
Metric
Definition
Notes
Customer Churn Rate
(Customer at the start of the period - Customers at the end of the period - New Customers Added during the period)/(Customers at the start of the period)
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Revenue Churn Rate
(Revenue at the start of the period - Revenue at the end of the period - New Revenue Added during the period)/(Revenue at the start of the period)
Churned Revenue → Churn, Cancellations, Non-Renewals, Contraction (Account Downgrades)
Open
Customer Lifetime Value(CLV)
Lifetime Value(LTV)
Customer lifetime rate = 1/(Customer Churn Rate)
Average Revenue Per Account(ARPA) = (Total Revenue)/(No. of Customers)
CLV = Customer Lifetime Rate x ARPA
CLV shows the average customer worth
CLV or LTV based on gross margin = ARPA x Gross Margin x Customer Lifetime Rate
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Customer Acquisition Cost (CAC)
(Among spent on sales and marketing) / (new customers added)
Open
Months to recover CAC
CAC Payback period
CAC / (MRR * Gross Margin)
measures the number of months it takes to generate enough revenue to cover the cost of acquiring a customer
Open
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