SaaS Metrics
A set of key performance indicators specific to subscription-based software businesses.
In Depth
SaaS (Software as a Service) metrics are a standardized set of KPIs used to measure the health, growth, and efficiency of subscription-based software businesses. Core SaaS metrics include: MRR/ARR (recurring revenue), Churn Rate (customer/revenue loss), CLV (customer lifetime value), CAC (customer acquisition cost), CLV:CAC ratio (unit economics), Net Revenue Retention (expansion minus churn), Gross Margin (revenue minus cost of goods sold), Burn Rate (cash consumption), Runway (months of cash remaining), and Rule of 40 (growth rate + profit margin should exceed 40%). These metrics provide a comprehensive framework for evaluating SaaS business performance, guiding investment decisions, and benchmarking against industry standards.
How AI for Database Helps
AI for Database lets you track all critical SaaS metrics from your database with natural language questions—no spreadsheet formulas needed.
Related Terms
MRR
Monthly Recurring Revenue—the predictable total revenue generated from all active subscriptions in a month.
ARR
Annual Recurring Revenue—the yearly value of recurring subscription revenue, typically MRR multiplied by 12.
Churn Rate
The percentage of customers or subscribers who stop using a product or service during a given time period.
Customer Lifetime Value
The total revenue a business can expect from a single customer account over the entire duration of their relationship.
Customer Acquisition Cost
The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.
Ready to try AI for Database?
Query your database in plain English. No SQL required. Start free today.