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SaaS metrics

SaaS metrics glossary

A plain guide to 19 SaaS metrics, from visitor to trial rate to LTV to CAC, each with a formula, an example and a calculator.

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Each page below defines one metric in a sentence, gives the formula in words and symbols, works an example with made up numbers, lists the mistakes that most often distort it and links to a calculator that runs the sum with your figures. The metrics are grouped by where they sit in the path from a visitor to a customer who stays.

Visitors

The top of the funnel: how many of the people who arrive start a trial.

Visitor to trial conversion rateDistinct visitors who start a trial, out of all visitors in the same period.

Trials

What happens between starting a trial or a free plan and becoming a paying customer.

Trial to paid conversion rateWhat fraction of a trial start cohort turns into paying customers.Freemium conversion rateFree signups that upgrade inside a stated window, as a fraction of all signups.

Payments

Charges that fail, why they fail and how much of the lost revenue comes back.

Failed payment rateFailed charges divided by attempted charges.Card decline rateDeclined attempts divided by attempts, split into soft and hard declines.Payment recovery rateHow many failed payments are collected later, out of all that failed.DunningRetries, messages, a grace period and a final action for failed payments.

Recurring revenue

The size of the subscription base and how it changes from month to month.

MRRThe monthly equivalent of every active subscription, and its four movements.ARRMRR times twelve, a run rate and not recognized revenue.ARPUMRR divided by paying customers.Expansion MRRRevenue added by existing customers through upgrades, seats, add-ons and usage.

Customers kept

Who stays, what it costs to win them and what they are worth over time.

Involuntary churnCustomers lost to a failed charge that was never collected.Churn rateCustomers who left, over the customers you began with. New arrivals do not count.Revenue churn rateSubscription revenue that cancels or shrinks, shown before and after expansion.Net revenue retentionHow much of the starting recurring revenue remains after losses and expansion.Customer lifetime valueThe gross margin a customer brings over the life of the account.Customer acquisition costTotal acquisition spend over the paying customers it won.CAC payback periodThe months of gross margin it takes to earn back what a customer cost to win.LTV to CAC ratioWhat a customer is worth over their lifetime, set against the cost of winning them.

Calculators

Every calculator runs in your browser and shows its working. The fee calculators also come in versions for the UK, Canada and Australia.

ROI calculatorWeigh what a change to your trial or billing is worth against what it costs.Trial conversion rate calculatorWork out visitor to trial and trial to paid rates from your own counts.Churn rate calculatorCustomer and revenue churn from your opening base and your losses.Customer lifetime value calculatorLifetime value from revenue per account, gross margin and churn.MRR calculatorMonthly recurring revenue from your plans and customer counts.Failed payment recovery calculatorWhat a change in recovery rate is worth in revenue you keep.Price increase calculatorSee how a price change moves revenue once some customers leave.Proration calculatorSplit a charge across a plan change by the days used.Gross margin calculatorGross margin and markup from your price and your cost.Stripe fee calculatorCard fees and net payout on a US Stripe payment.PayPal fee calculatorFees and net amount on a US PayPal payment.Square fee calculatorFees and net amount on a US Square payment.
Stripe fee calculator for the UKCard fees and net payout in pounds.Stripe fee calculator for CanadaCard fees and net payout in Canadian dollars.Stripe fee calculator for AustraliaCard fees and net payout in Australian dollars.PayPal fee calculator for the UKFees and net amount in pounds.PayPal fee calculator for CanadaFees and net amount in Canadian dollars.PayPal fee calculator for AustraliaFees and net amount in Australian dollars.Square fee calculator for CanadaFees and net amount in Canadian dollars.Square fee calculator for AustraliaFees and net amount in Australian dollars.