Plain definitions of the numbers that decide whether a SaaS grows or stalls. Every entry gives the formula, the benchmark that matters and a free calculator to run your own figure. No jargon, nothing stored.
Most SaaS metrics are simple to define and easy to misread. This glossary gives you the honest version of each one, the standard formula and the benchmark that actually applies, then sends you to a calculator so the number is yours in seconds.
We built it because we are a SaaS marketing agency and these are the metrics we live in. A CAC measured on media alone or an LTV built on revenue instead of margin sends budget the wrong way. The definitions here are the ones we use with clients.
What you pay fully loaded to win one customer and why it only matters next to LTV.
Read the definition →The total gross profit a customer brings before they churn, measured honestly on margin.
Read the definition →What a customer is worth against what they cost, where 3 to 1 is the benchmark.
Read the definition →How many months it takes to earn back the cost of winning a customer.
Read the definition →The average recurring revenue each customer pays and why it drives every other metric.
Read the definition →The predictable subscription revenue you earn each month and the four parts that move it.
Read the definition →The yearly value of your recurring subscriptions and what does not belong in it.
Read the definition →The share of revenue left after delivery cost and why software should clear 70 percent.
Read the definition →Revenue kept and expanded from existing customers, where over 100 percent is the goal.
Read the definition →The recurring revenue you keep before expansion and why it caps at 100 percent.
Read the definition →The share of customers or revenue you lose each period and how to read it honestly.
Read the definition →Why your growth rate plus profit margin should clear 40 percent.
Read the definition →How much new ARR each dollar of sales and marketing buys and why 0.75 is the line.
Read the definition →Your gains against your losses in one number and why above 4 is healthy.
Read the definition →The share of qualified deals your team closes and how it sets pipeline need.
Read the definition →How fast you spend cash each month and how net burn sets your runway.
Read the definition →It is a plain-English reference for the metrics that decide whether a SaaS grows or stalls. Each entry gives the definition, the formula and a benchmark, then links to a free calculator so you can run your own number. No jargon, no gate, no signup.
Yes. Every definition is free to read and use, forever, with no email gate or signup. Each one pairs with a free calculator that runs in your browser so nothing you enter is stored.
We are a SaaS marketing agency and these are the metrics we work in every day. The definitions use the standard formulas and the honest reading, the same one we use with clients.
Definitions tell you what a metric is. We tell you which one to fix first. Book a 30-minute audit and we will read your numbers with you. No sales sequence.
Book the 30-minute audit →