10 SaaS Growth

Metrics + Formulas &

Tips
01. CONVERSION RATE
This means the number of order (rate) business gets from a
specific number of visitors.

Formula Pro tip

Number of orders Give discounts
CR= X 100(%) and promo
Number of visitors
codes

Credit: Cloudways
 02. CUSTOMER ACQUISITION COST
(CAC)
The cost associated with convincing a customer to buy a
product/service.

Formula Pro tip

Total marketing +

CAC=
sales expenses
Add value for
Number of new your users
customers acquired
 03. CHURN RATE
The percentage rate at which customers stop subscribing
to a product/service

Formula Pro tip

Customers leaving your Ask yourself why the
business
customers are leaving. Ask
X 100 for feedback about your
Total number of customers service. Improve your service
acquired
 04.
CUSTOMER LIFETIME VALUE
(CLV)
The prediction of the net profit attributed to the entire
future relationship with a customer.

Formula Pro tip

1 Help customers to move to
CLV= X ARPA annual billing. Increase in
Churn rate profits
 05.
MONTHLY RECURRING REVENUE
(MRR)
All of your recurring revenue normalized into a monthly
amount

Formula Pro tip

MRR= Number of
customers X Payment
per month Increase your customer base
every month
 06.
ANNUAL RECURRING REVENUE
(ARR)
All of your recurring revenue normalized into an annual
amount

Formula Pro tip

Number of Reduce churn rate to improve
ARR= customers X Payment
per year yearly revenue
 07.
AVERAGE REVENUE PER
ACCOUNT (ARPA)
Measuring revenue generated per account on a monthly or
an annual basis.

Formula Pro tip

Total monthly
recurring revenue Provide more value to each
ARPA= user and then upsell
Total number of
accounts
 08. REVENUE CHURN
The measure of lost revenue.

Formula Pro tip

Total customers
churned Take feedback from
RC= customers who are leaving
Total customers before and bring them back
the start of a period
 09. TRAFFIC
The number of visitors that land on your website.

Formula Pro tip

Calculate the Produce relevant (keyword
number of visitors focused) and engaging
per day content
 10.
NET PROMOTER SCORE
(NPS)
You measure NPS by asking questions from customers.

Formula Pro tip

How likely is it that you Deliver the promises you
would recommend made while selling your
(brand's name) to a service
friend or colleague?