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Free SaaS Magic Number Calculator - Sales Efficiency

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 Formula

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.

How to Interpret

  • Above 1.0: Highly efficient - invest more in S&M
  • 0.5 to 1.0: Healthy - sustainable growth investment
  • Below 0.5: Inefficient - rework go-to-market before scaling spend

DealARR computes Magic Number, Burn Multiple, CAC payback, and LTV/CAC automatically from your deal book and S&M spend.