SaaS Metrics 

SaaS Metrics are key performance indicators (KPIs) specifically used to measure the financial health, growth, and operational performance of SaaS (Software as a Service) businesses. They provide insights into recurring revenue streams, customer acquisition efficiency, retention rates, and profitability. Important SaaS metrics include: 

  • Monthly Recurring Revenue (MRR) 

  • Annual Recurring Revenue (ARR) 

  • Customer Acquisition Cost (CAC) 

  • Customer Lifetime Value (CLV or LTV) 

  • Churn Rate 

  • Gross Margin 

  • Net Dollar Retention (NDR) 

  • Average Revenue Per User (ARPU) 

These metrics help founders, investors, and finance teams make data-driven decisions about pricing, marketing spend, product development, and expansion.