daniel kivatinos

The Basics of SaaS Metrics

5 C’s.

1.       Committed MRR – this is the same as MRR if you don’t have an implementation phase ie. someone starts paying as soon as they commit.

2.       Churn – you can calculate unit churn as “paying users lost”/”total paying users in previous month”. If you track cumulative MRR, you can also calculate $ churn in the same way

3.       Cash (operational cash flow) – the financial statements

4.       CAC – is the total acquisition cost (sales + marketing) divided by the gross new paying users added

5.       CLTV – for this ideally you have the cohort as churn for a cohort should be going down over time. Else you can do as upfront cash + MRR*(1/annual churn) – CAC. This is pre time value of money to keep it simple

Some more great information to read.


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