The Magic Number in SaaS: Formula, Benchmarks, and How to Improve It
Category: SaaS Metrics · Published: 2026-04-17
The Magic Number is a sales efficiency metric that measures new ARR generated per dollar of Sales and Marketing spend. A Magic Number above 0.75 is acceptable; above 1.0 is good; above 1.5 is exceptional. Learn the formula, what it tells you about your go-to-market efficiency, and how to improve it.
Topics covered
- magic number saas
- saas magic number
- sales efficiency metric
- go to market efficiency
- saas benchmarks