BEST

10 SaaS
KPIs

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 10 BEST SAAS KPIs 2

CUSTOMER
CHURN-RATE
Description:
Percentage of customers lost in a given
time frame

Formula:
Customers lost / Total Customers

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 10 BEST SAAS KPIs

NEW BUYER
GROWTH RATE
Description:
Speed at which you gain new
customers over defined periods of
time

Formula:
(New buyers this month -
New buyers last month)
/ New buyers last month

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 10 BEST SAAS KPIs

LIFETIME
VALUE
Description:
Revenue from a customer over the
retention time period

Formula:
Customer Value * Average
Customer Lifespan

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 10 BEST SAAS KPIs 2

CUSTOMER
ACQUISITION
COSTS
Description:
Amount of money a company spends
to get a new customer

Formula:
Cost of Sales and Marketing /
Number of New Customers
Acquired

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 10 BEST SAAS KPIs

NET
BURN RATE
Description:
Net Cash spent by a company in a
specific time frame (usually monthly or
normalized to a year)

Formula:
Cash Spent -
Cash received

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 10 BEST SAAS KPIs

RUNWAY
Description:
Time that a startup has before they run
out of finances

Formula:
Current Cash Balance
/ Burn Rate

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 10 BEST SAAS KPIs

AVERAGE
REVENUE PER
USER (ARPU)
Description:
Average revenue generated per
customer (either monthly or annually)

Formula:
Total revenue / Total
?
number of customers

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 10 BEST SAAS KPIs 2

SAAS QUICK
RATIO
Description:
Compares revenue added (new
business) vs revenue lost (churn)

Formula:
(New MRRt + Expansion MRRt) /
(Churned MRRt + Contraction
MRRt)

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 10 BEST SAAS KPIs

MONTHLY
RECURRING
REVENUE (MRR)
Description:
Monthly revenue from customers with
a subscription.

Formula:
Number of customers *
Average billed amount

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 10 BEST SAAS KPIs 2

TOTAL
ADDRESSABLE
MARKET (TAM)
Description:
Market size of a product/service in
value that the company can achieve

Formula:
Annual Contract
Value per client *
Number of
potential clients

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