Metric definitions
- CAC Payback Period
Learn CAC payback period (definition + formula), see benchmark ranges, common pitfalls, and practical levers to shorten payback.
- LTV:CAC Ratio
Learn LTV:CAC, how to calculate it correctly, benchmark ranges, and levers to improve it.
- SaaS Magic Number
Magic number estimates how much new ARR you generate per dollar of sales & marketing spend.
- Burn Multiple
Burn multiple measures how much cash you burn to generate net new ARR. Learn formula and levers.
- Customer Acquisition Cost (CAC)
CAC measures the cost to acquire a customer. Learn how to calculate fully-loaded CAC and reduce it.
- Customer Lifetime Value (LTV)
Learn LTV, how to calculate it safely, common pitfalls, and how to increase it.
- Gross Margin
Gross margin is revenue minus COGS. Learn SaaS-specific COGS, benchmarks, and improvement levers.
- Monthly Recurring Revenue (MRR)
MRR is the core revenue heartbeat of SaaS. Learn what counts, how to decompose MRR, and common pitfalls.
- Annual Recurring Revenue (ARR)
ARR is MRR × 12 (with caveats). Learn what ARR means, how to compute it, and pitfalls.
- Conversion Rate
Conversion rate turns traffic into signups and revenue. Learn how to define and improve conversion across the funnel.
Calculators
- CAC Payback Calculator
Calculate CAC payback period using CAC, ARPA, and gross margin. Share results via URL and track improvements over time.
- LTV:CAC Ratio Calculator
Compute LTV:CAC ratio using LTV and CAC or via ARPA/gross margin/churn + CAC.
- LTV Calculator
Calculate LTV using ARPA, gross margin, and churn. Includes shareable inputs via URL.
- Burn Multiple Calculator
Calculate burn multiple from net burn and net new ARR.
Benchmark pages
Templates
Turn this topic into an operating system
Standardize KPI definitions, pick a template, and track results weekly. That’s how topical knowledge becomes execution.