Question 1

What SaaS metrics should I track at the Seed stage?

Accepted Answer

At the Seed stage, focus on MRR growth rate, burn rate, CAC payback period, and logo churn. These tell investors whether you have product-market fit and a viable path to scale. More advanced metrics like NRR and Magic Number become critical from Series A onward. The cheatsheet includes stage-specific benchmarks for Seed, Series A, Series B, and Series C.

Question 2

What is a good LTV:CAC ratio for a SaaS company?

Accepted Answer

A healthy LTV:CAC ratio is 3:1 or higher - meaning each customer generates at least three times what it cost to acquire them. Below 1:1 means you are losing money on every customer. Between 1:1 and 3:1 signals room for improvement. Above 5:1 may mean you are under-investing in growth. The cheatsheet includes benchmark ranges by funding stage.

Question 3

How is Net Revenue Retention (NRR) calculated?

Accepted Answer

NRR = (Starting MRR + Expansion MRR - Contraction MRR - Churned MRR) / Starting MRR x 100. An NRR above 100% means you are growing revenue from existing customers even without new sales. Best-in-class SaaS companies target 120%+ NRR. The cheatsheet covers NRR alongside 20+ other metrics with formulas and benchmarks.

Question 4

What does the Rule of 40 mean in SaaS?

Accepted Answer

The Rule of 40 states that a SaaS company's combined revenue growth rate and profit margin should exceed 40%. For example, 30% growth + 15% margin = 45%, which passes the test. It is used by investors and PE firms to evaluate whether a company balances growth with profitability. Companies above 40% are generally considered healthy; those well below may be growing too slowly or burning too much cash.

Question 5

Is this cheatsheet free? Do I need to create an account?

Accepted Answer

Yes, the SaaS Metrics Cheatsheet is completely free. Just enter your email and we will send the PDF to your inbox instantly. No account creation, no credit card, and no sales call required.

Question 6

What is the difference between gross churn and net churn in SaaS?

Accepted Answer

Gross churn measures the total revenue or customers lost in a period, ignoring any expansion from remaining customers. Net churn (or net revenue churn) subtracts expansion revenue from the loss, so it can be negative if upsells outpace cancellations. Negative net churn is the gold standard - it means your existing customer base grows on its own. Both metrics and their formulas are included in the cheatsheet.

The SaaS Metrics Cheatsheet

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Key SaaS metrics covered in this cheatsheet

MRR / ARR

CAC & LTV

Net Revenue Retention (NRR)

Burn Multiple

Rule of 40

Magic Number

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