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SaaS Metrics Dictionary

Plain-English definitions, formulas, benchmarks, and examples for the 20 SaaS revenue operations metrics that matter most to founders, RevOps leaders, and investors.

Revenue Metrics

  • ARR (Annual Recurring Revenue) — annualized value of recurring subscription contracts
  • MRR (Monthly Recurring Revenue) — normalized monthly subscription revenue
  • TCV (Total Contract Value) — full value of a contract over its term
  • ACV (Annual Contract Value) — annualized value of a single contract
  • NRR (Net Revenue Retention) — retention rate including expansion, contraction, and churn
  • GRR (Gross Revenue Retention) — retention rate excluding expansion

Efficiency Metrics

  • CAC (Customer Acquisition Cost) — total sales and marketing spend per new customer
  • LTV (Customer Lifetime Value) — expected revenue from a customer over their lifetime
  • LTV/CAC Ratio — return on customer acquisition investment
  • CAC Payback Period — months to recover the cost of acquiring a customer
  • Rule of 40 — growth rate plus profit margin combined into one score
  • Burn Multiple — net burn divided by net new ARR
  • Magic Number — new ARR divided by prior quarter S&M spend

Retention Metrics

  • Logo Churn — percentage of customers lost in a period
  • Revenue Churn — percentage of MRR or ARR lost from churned customers
  • Net Revenue Churn — revenue churn net of expansion from existing customers

Pipeline Metrics

  • Pipeline Coverage — pipeline value divided by quota
  • Forecast Accuracy — actual closed ARR vs. forecast ARR
  • ARR Bridge — waterfall showing new, expansion, contraction, and churned ARR movements

DealARR calculates all of these metrics automatically from your deal book. Start a free trial to see your metrics in real time.