SaaS Magic Number measures the efficiency of your sales and marketing investment by comparing net new ARR to S&M spend. It tells you whether to invest more in growth. Use this free Magic Number calculator to score sales efficiency.
Magic Number = (Current Quarter ARR - Previous Quarter ARR) × 4 / Previous Quarter S&M Spend. The result is annualized to indicate the ARR generated per dollar of S&M.
DealARR computes Magic Number, Burn Multiple, CAC payback, and LTV/CAC automatically from your deal book and S&M spend.