Transparent formulas, explicit assumptions, versioned definitions.

CAC = Sales and marketing spend / New customers acquired

Calculate blended CAC from acquisition spend and new customer volume.

CAC payback = CAC / (ARPA * Gross margin)

Estimate how many months it takes to recover CAC from gross profit.

LTV = ARPA * Gross margin / Monthly churn rate

Estimate gross-profit lifetime value using ARPA, margin, and churn.

LTV:CAC = LTV / CAC

Compare lifetime value to acquisition cost to judge acquisition efficiency.

NRR = (Beginning revenue - churn - contraction + expansion) / Beginning revenue * 100

Measure retained and expanded recurring revenue from an existing cohort.

Gross margin % = (Revenue − COGS) / Revenue × 100

Calculate gross margin percent and gross profit from revenue and cost of goods sold for a reporting period.

EBITDA margin % = EBITDA / Revenue × 100

Calculate EBITDA margin for a reporting period. Enter the EBITDA and revenue your finance team uses, one definition per board pack.

FCF margin % = Free cash flow / Revenue × 100

Calculate free cash flow margin for a reporting period. Enter FCF and revenue on the same cash or accrual basis your board uses.

GRR = (Beginning revenue - churn - contraction) / Beginning revenue * 100

Measure retained recurring revenue before expansion offsets losses.

Logo churn = Churned customers / Starting customers; gross revenue churn = lost MRR / starting MRR

Calculate logo churn, gross revenue churn, and net revenue churn together.

ARR = MRR * 12; ARPA = MRR / paying accounts; ACV = annual contract value / annual contracts

Normalize core recurring revenue metrics for SaaS reporting.

Rule of 40 = Revenue growth % + EBITDA margin %

Combine growth and profitability into the classic SaaS operating balance score.

Magic Number = (Current quarter ARR - Prior quarter ARR) / Prior quarter sales and marketing spend

Estimate sales and marketing efficiency from the ARR created by the previous quarter's spend.

Burn multiple = Net burn / Net new ARR

Measure how many dollars of burn are required to create each dollar of net new ARR.

Quick ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

Compare new and expansion revenue against churn and contraction drag.

Revenue growth % = (Current revenue − Prior revenue) / Prior revenue × 100

Measure period-over-period revenue growth. Label the comparison (YoY or QoQ) for board consistency, the formula is the same.

Revenue per employee = Revenue / FTEs

Measure total company revenue per full-time equivalent. Distinct from new ARR per GTM FTE, this uses total revenue and total headcount.

Rule of X = (Revenue growth % × growth weight) + Free cash flow margin %

Weight growth against free cash flow margin for later-stage SaaS valuation discipline.

Net new ARR = New ARR + Expansion ARR - Churned ARR - Contraction ARR

Break ARR creation into new, expansion, churn, and contraction components.

Runway (months) = Cash on hand / Monthly net burn

Estimate months of runway from cash, revenue, and operating expenses. Toggle scenarios for hiring or growth assumptions.

Pipeline coverage = Qualified pipeline / Revenue target

Estimate whether qualified pipeline is sufficient for a revenue target.

Sales velocity = Opportunities × Average deal size × Win rate / Sales cycle days

Calculate expected revenue throughput per day across a sales pipeline.

Win rate = Won deals / Total closed deals × 100

Measure closed-won efficiency from closed opportunity volume.

GTM efficiency = (Net new ARR / Sales and marketing spend) × NRR × Gross margin

Blend acquisition efficiency, retention quality, and margin into one operating score.

New ARR per GTM FTE = Net new ARR / GTM FTEs

Measure net new ARR created per go-to-market full-time equivalent.

Ramped quota capacity = Ramped AEs × Average quota per AE × Attainment assumption

Estimate bookings capacity from fully ramped account executives, quota, and expected attainment.

Ramped quota coverage = Ramped quota capacity / Bookings plan

Compare ramped AE quota capacity to the period bookings plan to expose reliance on unramped reps or new hires.

New ARR mix = Each source ARR / Total new ARR × 100; concentration = largest single-source share

Report the percent split of new ARR across sourcing channels and flag concentration risk.