SaaS Metrics Glossary (2026)
Quick-reference glossary of 40+ SaaS KPIs. Each entry is a one-line formula, the 2026 benchmark anchor, and a link to the dedicated calculator or explainer on this site. Updated May 2026.
How to read this glossary
Each entry has three parts: a plain-English name, a one-line formula (the most common variant), and a benchmark anchor that places the KPI in context for 2026. The deep-link sends you to the full per-metric calculator or explainer page on this site where the variants, the worked examples, and the benchmark distribution by ARR tier all live.
Most SaaS metrics have multiple variants. CAC can be calculated fully loaded, sales-only, or by channel. LTV can include gross margin or not, can use churn rate or retention. Magic number can be calculated quarter or year. The variants are not random; they reflect different audiences (board, finance, sales ops, marketing). The per-metric pages walk through which variant fits which use case.
Benchmark anchors here are summary points. The full benchmark distributions (median, top quartile, by ARR tier, by funding stage) live on the dedicated 2026 benchmarks page, the benchmarks by ARR tier page, and the public SaaS dashboard.
Recurring revenue
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| ARR (Annual Recurring Revenue) | MRR x 12 + signed annual contracts | Headline scale metric | Open -> |
| MRR (Monthly Recurring Revenue) | Sum of monthly subscription contracts | Operational tracking metric | Open -> |
| ARPU / ARPA | Total recurring revenue / Active users (or accounts) | ICP signal + revenue density | Open -> |
| Net New ARR | New + Expansion - Churn - Contraction | Growth engine output | Open -> |
| Bookings | Total contract value signed in a period | Sales activity (not recurring) | Open -> |
| Committed ARR (cARR) | ARR from active + signed-but-not-started contracts | Forward signal | Open -> |
Retention + churn
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| Gross Revenue Retention (GRR) | (Start ARR - Churn ARR - Contraction ARR) / Start ARR | 2026 median 86-94% depending on tier | Open -> |
| Net Revenue Retention (NRR) | (Start ARR - Churn + Expansion - Contraction) / Start ARR | 2026 median 100-115% depending on tier | Open -> |
| Logo Churn Rate | Lost customers / Starting customers | Different signal from revenue churn | Open -> |
| Revenue Churn Rate | Lost recurring revenue / Starting recurring revenue | Often diverges from logo churn | Open -> |
| Cohort Retention | Active revenue at month N / Cohort starting revenue | Curve shape reveals stickiness | Open -> |
| Expansion Rate | Expansion ARR / Starting ARR | Component of NRR | Open -> |
Unit economics
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| CAC (Customer Acquisition Cost) | Total S&M spend / New customers acquired | Segment by channel for true signal | Open -> |
| LTV (Customer Lifetime Value) | ARPU x Gross Margin / Churn Rate | Several variants exist; choose one | Open -> |
| LTV:CAC Ratio | LTV / CAC | 3x at all stages, 4x+ at Series B+ | Open -> |
| CAC Payback Months | CAC / (ARPU x Gross Margin per month) | Target less than 18 months at Series A | Open -> |
| Magic Number | (QoQ ARR delta x 4) / Prior quarter S&M | Above 1.0 = each S&M $ produced more than $1 ARR | Open -> |
| Quick Ratio (SaaS) | (New + Expansion) / (Churn + Contraction) | Above 4 = healthy growth engine | Open -> |
Capital efficiency
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| Burn Multiple | Net cash burn / Net new ARR | Target less than 1.5 at Series A, less than 1.2 at Series B+ | Open -> |
| Rule of 40 | Revenue growth rate + EBITDA margin | Above 40 = healthy; tiered targets in 2026 | Open -> |
| Runway | Cash / Monthly net burn | Target 18+ months at current burn | Open -> |
| Gross Margin (SaaS) | (Revenue - COGS) / Revenue | Target 70%+ at Series B, 75%+ at Series C | Open -> |
| EBITDA Margin | EBITDA / Revenue | Negative for early stage; positive by Series C | Open -> |
| FCF Margin | Free Cash Flow / Revenue | Public SaaS median ~10% in 2026 | Open -> |
Pipeline + growth
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| Pipeline Coverage | Pipeline value / Quota for the period | Target 3x for next quarter | Open -> |
| Win Rate | Closed-won / All opportunities created | Track by segment; varies 15-35% | Open -> |
| Sales Cycle Length | Average days from opportunity created to closed-won | Lengthens with ACV | Open -> |
| Sales Velocity | (Opportunities x Win Rate x ACV) / Cycle Length | Composite efficiency metric | Open -> |
| Quota Attainment | Reps at 100%+ quota / Total quota-carrying reps | Target 60%+ at quota | Open -> |
| ARR per Rep | Total ARR / Quota-carrying reps | $0.8-1.5M at $25M+ ARR scale | Open -> |
Customer health
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| NPS (Net Promoter Score) | % Promoters - % Detractors | 30+ healthy for B2B SaaS | Open -> |
| Customer Concentration | Top N customers as % of ARR | Top 5 < 25% by Series B | Open -> |
| Days Sales Outstanding (DSO) | (AR / Revenue) x Days in period | 30-45 days typical for SaaS | Open -> |
| Activation Rate | Users reaching value milestone / New signups | PLG-specific; target 40-60% for free trials | Open -> |
| Time to Value | Average days from signup to first value event | Lower is better; ICP-specific | Open -> |
Cross-functional ratios
| Metric | Formula | Benchmark anchor | Calculator / explainer |
|---|---|---|---|
| SaaS ROI (Buyer side) | (Gain - Cost) / Cost over evaluation period | Inverts the seller-side view | Open -> |
| Implied Multiple | Last round price / ARR | Backs into the multiple your last round priced in | Open -> |
| Burn vs Plan Variance | Actual burn / Planned burn | Tracked monthly; deviation > 10% is signal | Open -> |
| Headcount per $M ARR | Total headcount / ARR in millions | Falls as you scale; ~5-8 at $25M+ | Open -> |
Definitional edge cases that matter
A handful of metrics have variants that materially change the number. Be deliberate about which variant you use, and document the choice in your methodology page.
ARR vs cARR. ARR counts only active customers. Committed ARR also counts contracts signed but not yet started. The two can differ by 5 to 15 percent at any given moment. For investor-facing reporting use ARR. For sales-team performance reporting cARR is sometimes cleaner because it credits closed deals immediately.
CAC fully loaded vs S&M only. Fully loaded CAC includes the full cost of acquiring a customer (S&M people, programs, tools, software, allocated management). S&M-only CAC includes just sales and marketing spend. Investors typically want fully loaded for diligence and S&M-only for ongoing efficiency tracking.
LTV using churn vs LTV using retention. LTV calculated as ARPU x Gross Margin / Churn assumes constant churn. LTV calculated using cohort retention curves is more accurate for SaaS with declining churn (which is most SaaS). The cohort method typically produces higher LTV values that better reflect actual customer behaviour.
Magic number per quarter vs annualised. The quarterly figure is volatile and useful as a leading indicator. The annualised version (trailing four quarters) is stable and is what investors will recompute themselves. Show both, lead with the trailing year.
NRR with vs without a specific large account. A single large expansion or churn can swing NRR by 4 to 8 points in a quarter. Show NRR with and without the top one to two movers so the underlying trend is visible. Investors will ask anyway, save the round trip.
Use the calculators and the cohort benchmarks together
The glossary is the index. The dedicated pages are where the actual math, benchmark distributions, and worked examples live. The pages below are the most useful starting points by use case.
For sister-site coverage: valuation multiples at saasvaluationmultiple.com, churn cost modelling at churncost.com.