SaaS Metrics

The number for the
decision in front of you.

Founderpath has a calculator for almost every SaaS number. The harder question is which one matters for the call you are about to make. This hub maps growth, retention, efficiency, profitability, and cash to the decisions they inform — then points you to the tool.

Choose by decision
Pick what you're deciding

Tell us what you are deciding and we point you to the three to five metrics that matter most — with the formula, a plain-language read, and a direct link to the calculator.

You are deciding where to invest to accelerate growth. Focus on these 5 metrics:

Growth Rate

(Current − Prior) ÷ Prior × 100

How fast recurring revenue is compounding period over period.

Net Revenue Retention

(Start MRR + Expansion − Contraction − Churn) ÷ Start MRR × 100

Whether existing customers grow or shrink on their own — the clearest signal of durable growth.

CAC

Sales & marketing spend ÷ new customers

What it costs to win one customer.

CAC Payback Period

CAC ÷ (ARPU × gross margin)

How many months until a new customer pays back their acquisition cost.

Rule of 40

Growth rate % + profit margin %

The balance between growth and profitability investors expect at scale.

The five groups
Every SaaS founder tracks these

Revenue & Growth

The size and speed of your recurring revenue.

MRR

Your recurring revenue run-rate this month, before one-off fees.

ARR

The annualized value of your recurring contracts — the headline number lenders underwrite.

Growth Rate

How fast recurring revenue is compounding period over period.

Revenue Multiple

The multiple the market applies to your recurring revenue.

What these can't tell you

Revenue size and speed say nothing about whether that growth is profitable or whether customers stay — read them alongside retention and margin.

Retention

Whether customers stay and expand.

Net Revenue Retention

Whether existing customers grow or shrink on their own — the clearest signal of durable growth.

Gross Revenue Retention

Retention with expansion stripped out — the floor under your revenue base.

Churn Rate

The leak in the bucket — how much you must replace just to stay flat.

What these can't tell you

Retention tells you that customers stay, not why they leave or what they cost to keep — pair it with CAC and product signals.

Acquisition Efficiency

What growth costs to buy.

CAC

What it costs to win one customer.

LTV

The gross profit an average customer generates over their lifetime.

CAC Payback Period

How many months until a new customer pays back their acquisition cost.

Viral Coefficient

How much organic growth each customer generates for free.

What these can't tell you

Efficiency ratios assume future cohorts behave like past ones; a shifting ICP or a pricing change can make them stale fast.

Profitability

How much revenue survives to the bottom line.

Gross Margin

How much of each revenue dollar survives cost of delivery — the ceiling on everything downstream.

EBITDA Margin

Operating profitability before financing and accounting effects.

Rule of 40

The balance between growth and profitability investors expect at scale.

Markup & Margin

The pricing headroom between what you charge and what delivery costs.

What these can't tell you

Margin shows profitability today, not the investment you may be deferring — a high margin can mask under-investment in growth.

Cash & Runway

How long your cash lasts and how efficiently you spend it.

Burn Rate

How fast you are consuming cash each month.

Cash Runway

How many months you can operate before you need more cash.

Burn Multiple

How much you burn to add a dollar of ARR — capital efficiency in one number.

Break-Even

The volume at which revenue finally covers costs.

What these can't tell you

Runway is a snapshot at today's burn; it can't foresee a sales slowdown, a churn spike, or a collections delay.

Financing readiness

From healthy metrics
to responsible capital.

The same numbers that run your business decide whether you are ready for non-dilutive capital. Lenders underwrite predictability, not hype. Founderpath funds bootstrapped B2B SaaS from $10K MRR — you keep your equity.

Predictable MRR/ARR with a clear growth rate a lender can underwrite.

Net Revenue Retention at or above 100% — expansion offsetting churn.

Churn low enough that the revenue base is durable, not replaced each quarter.

Gross margin healthy enough to service capital without starving the business.

Cash runway long enough that you are choosing capital, not cornered into it.

Questions
Term-sheet answers, no fine print

Group them by the decision they inform: revenue and growth (MRR, ARR, growth rate), retention (NRR, churn, gross revenue retention), acquisition efficiency (CAC, LTV, payback period), profitability (gross margin, EBITDA margin, Rule of 40), and cash (burn rate, runway, burn multiple). No single number is decisive — each answers a different question.

A combined growth rate plus profit margin of 40% or more is the benchmark investors use for a healthy, scaled SaaS business. Below 40% signals you are neither growing fast enough nor profitable enough to balance the two.

Lenders underwrite predictability, not just size: recurring revenue (MRR/ARR) and its growth rate, Net Revenue Retention above 100%, low churn, healthy gross margin, and enough runway that you are choosing capital rather than being forced into it.

The calculators compute a single number, the glossary defines a term, and this hub organizes both around the decision in front of you — pick what you are deciding and it points you to the three to five metrics that matter and the calculator for each.