SaaS metrics

The measures investors and operators both read, calculated the same way each time.

SaaS metrics in SigmaPointPi
/verticals/startup/saas-metrics

ARR, growth, retention, magic number, burn multiple, payback. Each has a standard definition and each is routinely computed differently by different companies, which makes comparison meaningless.

These are computed from the ledger and each states its own formula, so nobody has to ask what is included.

Where everything sits

MRR
MRR
ARR
ARR
Customers
Customers
Churn Rate
Churn Rate
Monthly Recurring Revenue
Monthly Recurring Revenue
MRR Movement (New vs Churned vs Expansion)
MRR Movement (New vs Churned vs Expansion)

How to work this page

Read the definition on each measure

ARR that includes one-time services is not ARR. The formula is shown alongside every figure.

Separate new, expansion, contraction and churn

One net growth number hides four different businesses. The bridge shows all four.

Watch efficiency alongside growth

Growth bought at any cost is not a result. Burn multiple and payback are what say whether it is repeatable.

Compare against your own trend

Benchmarks are context. Your own trajectory is the thing you control.

On a phone

SaaS metrics on iPhone 15 Pro Max

Every figure from the desktop appears here, stacked rather than reduced. Tables scroll inside themselves so the page never moves sideways, and figures keep their separators and their alignment at every width.

Questions people actually ask

Is ARR monthly times twelve?

Only for genuinely recurring contracted revenue. Usage revenue and services are excluded, and the exclusions are listed.

What is the burn multiple?

Net burn divided by net new ARR. It answers how many dollars you consume to add one dollar of recurring revenue, and lower is better.