Running a SaaS and drowning in numbers? MRR, ARR, NRR, NDR, GRR... This guide gives you the 15 essential metrics every founder must master — with exact formulas, 2025 benchmarks, and real examples.
📌 What you'll learn:
- ✅ The 3 golden rules of profitable SaaS (Acquisition, Retention, Monetization)
- ✅ 15 key metrics with formulas and examples
- ✅ 2025 benchmarks by industry
- ✅ How to build your dashboard
- ✅ Common calculation mistakes to avoid
The 3 Golden Rules of Profitable SaaS
Before diving into metrics, understand this fundamental truth: a profitable SaaS rests on 3 pillars.
1. Acquisition
How much does it cost to acquire a customer?
Metrics: CAC, CAC Payback, Magic Number
2. Retention
How long do your customers stay?
Metrics: Churn, NRR, GRR, NDR
3. Monetization
How much does each customer generate?
Metrics: MRR, ARR, ARPU, LTV
"If you can't measure it, you can't improve it."
— Peter Drucker
📊 Revenue Metrics
1. MRR (Monthly Recurring Revenue)
Definition: Monthly recurring revenue. It's the pulse of your SaaS.
2. ARR (Annual Recurring Revenue)
Definition: MRR × 12. This is the valuation metric.
3. ARPU (Average Revenue Per User)
Definition: Average revenue per paying user.
🔄 Retention Metrics
4. Churn Rate
Definition: Percentage of customers or revenue lost over a period.
5. NRR (Net Revenue Retention)
Definition: The queen metric. Measures if you grow even without new customers.
6. GRR (Gross Revenue Retention)
Definition: Retention WITHOUT expansion. Measures pure retention quality.
7. NDR (Net Dollar Retention)
Definition: Same as NRR, just US terminology.
🎯 Acquisition Metrics
8. CAC (Customer Acquisition Cost)
Definition: Total cost to acquire ONE new customer.
9. LTV (Lifetime Value)
Definition: Total value a customer generates over their lifetime.
10. LTV/CAC Ratio
Definition: The magic ratio. How much you earn vs how much you spend to acquire.
11. CAC Payback Period
Definition: Time to recover your acquisition investment.
12. Magic Number
Definition: Efficiency of your sales & marketing spend.
💵 Financial Metrics
13. Gross Margin
Definition: What's left after direct service costs.
14. Burn Rate
Definition: How much cash you "burn" each month.
15. Runway
Definition: How many months you can survive with current cash.
Conclusion: Master Your Metrics, Master Your Destiny
SaaS metrics aren't just numbers to impress VCs. They're steering tools that tell you where you are and where you're going.
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