Predictable revenue that a company can expect to receive on an annual basis from its subscription-based products or services.
SaaS and Subscription Metrics
The ScaleXP SaaS Metrics Library explains the metrics every SaaS finance team needs at their fingertips, from MRR growth and net dollar retention to churn, CAC and customer lifetime value. Each metric page covers the formula, an example calculation and how to interpret the result. The library explains 20 core metrics; ScaleXP calculates 30+ metrics automatically from your accounting and CRM data.
Measures how long it takes for a company to recoup the costs of acquiring a new customer.
Cash Burn is cash used (“burned”) by the company’s operations when the company is not cash generative. Cash Runway is the amount of time until Cash Burn uses up all available cash.
A forward looking view of MRR, usually MRR plus new bookings less churn.
Cost to acquire one new customer.
Customer churn is the percentage of customers who stop doing business with a company or using a service.
Percentage of existing customers who remain customers after a given period.
The total gross profit a customer generates over their lifetime. Typically calculated as monthly gross profit divided by the monthly churn rate.
The percentage of revenue that a company retains from its existing customers over a given period of time.
Margin after direct costs, expressed as a percentage. Calculated as (revenue − cost of sales) ÷ revenue × 100.
Lifetime value divided by acquisition costs, indicating the margin delivered by each new customer.
Predictable revenue that a company can expect to receive on a monthly basis from its subscription-based products or services.
Percentage increase in MRR over a certain period of time, most typically a quarter or a year.
Measures growth in revenue from a group of customers. Typically split into upgrades, downgrades, renewals and losses.
Amount of recurring revenue lost over a specific period due to customer cancellations, downgrades, or price reductions.
Percentage increase in revenue over a certain period of time, most typically a quarter or a year.
The percentage of customers or subscriptions that are successfully renewed at the end of a specific period.
A measure of growth or sales efficiency. Calculated as Revenue Growth divided by Customer Acquisition Costs.
Measures the growth and profitability of a subscription business. Calculated as annual revenue growth rate plus EBITDA margin.
Sales Efficiency measures how efficiently a company converts its sales and marketing investments into new revenue.
Whether each customer is worth more than they cost to win: CAC, LTV, LTV:CAC, CAC payback and gross margin together.
Net cash burned for every dollar of net new annual recurring revenue (ARR) added over the same period. A lower number means more efficient growth.
The increase in monthly recurring revenue from existing customers during a period, from upgrades, added seats or usage, add-ons and price increases.
Annual recurring revenue divided by the number of full-time equivalent employees.
Sales and marketing spend divided by the new annual recurring revenue won in the same period.
The decrease in monthly recurring revenue from customers who stay but pay less, through downgrades, fewer seats or usage, and new discounts.
New and expansion MRR divided by churned and contraction MRR: how much recurring revenue is added for every dollar lost.
Total capital raised divided by current annual recurring revenue (ARR). It shows how many dollars of funding sit behind each dollar of ARR.
The share of closed sales opportunities that end as won deals, calculated from the won and lost outcomes in the CRM.
The average number of days from creating a sales opportunity to closing it as won.
Qualified pipeline expected to close in a period divided by the bookings target for that period.
The share of free trial or freemium signups that become paying customers within a set window.
Contracted revenue not yet recognized: deferred revenue plus signed contract value not yet billed.
See how Net Dollar Retention connects to the metrics above in our guide on Net Retention Rate.
“It's allowed me to provide our directors and potential investors with real-time information on our SaaS metrics.”
Estiaan · Finance Manager, Cue Technology
SaaS metrics library FAQs
What is the ScaleXP SaaS Metrics Library?
A free reference to 30+ SaaS metrics. Each entry gives the formula, an example calculation and how to read the result.
How does ScaleXP calculate these metrics?
ScaleXP calculates 30+ SaaS metrics straight from your accounting and CRM data, prepared daily.
Can I calculate ARR and MRR from Xero or QuickBooks data?
Yes. ScaleXP connects Xero or QuickBooks with your CRM and calculates ARR, MRR, churn and retention automatically, with drill-down to customer and invoice detail.