SaaS Metrics

SaaS Unit Economics Dashboard (2026)

Correct formulas and 2026 benchmarks for every unit economics metric investors actually use: CAC, LTV, LTV:CAC, NRR, burn multiple, and magic number. What the math actually says — not the simplified version.

Score Your SaaS Metrics → CAC & LTV Deep Dive

Direct answer: The six SaaS unit economics metrics investors focus on in 2026 are: CAC (fully-loaded sales + marketing spend ÷ new customers), LTV (average contract value ÷ gross churn rate), LTV:CAC ratio (target ≥3:1, best-in-class ≥5:1), NRR (existing customer MRR change ÷ starting MRR, target ≥100%), burn multiple (net burn ÷ net new ARR, target <1.5×), and magic number (net new ARR ÷ prior quarter S&M, target ≥0.75). Most teams understate CAC by 30–60% by excluding sales salaries. Sources: OpenView Partners 2026 SaaS Benchmarks (February 2026); Visible.vc Q1 2026 (March 2026).

The 6 Core SaaS Unit Economics Metrics

Customer Acquisition Cost (CAC)
Most Miscalculated Series A Critical
CAC = Total Sales & Marketing Spend ÷ New Customers Acquired
Measure over the same period (typically quarterly). Use fully-loaded S&M costs — not just marketing budget.

The most common CAC error: excluding sales rep salaries, commissions, and tooling. This understates CAC by 30–60% for most B2B SaaS companies. Fully-loaded CAC includes:

<12 mo
Best-in-class payback
12–18 mo
Acceptable payback
>24 mo
Below Series A bar

Source: OpenView Partners 2026 SaaS Benchmarks (February 2026).

Customer Lifetime Value (LTV)
Use Cohort Method
LTV = (Average Revenue Per Account × Gross Margin %) ÷ Customer Churn Rate
Use annual gross churn rate. Include gross margin — revenue alone overstates LTV for low-margin businesses.

The simplified LTV = ACV ÷ churn rate is directionally useful but misses gross margin and expansion. Cohort-based LTV is more accurate: track actual revenue from each customer cohort month-by-month, discounted to present value. This is what sophisticated investors calculate independently.

A gross margin adjustment matters: if your gross margin is 60% (not 80%), LTV is 25% lower than the simple formula suggests — which collapses your LTV:CAC ratio.

Source: Andreessen Horowitz (November 2025).

LTV:CAC Ratio
Primary Efficiency Metric
LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost
Report as a ratio (e.g., 4:1). Must use the same time period for both inputs.
≥5:1
Best-in-class (Series A)
3:1–4:1
Acceptable
<3:1
Below institutional bar

Note: LTV:CAC above 5:1 can prompt investor questions about whether you're underinvesting in growth. The right answer: show that marginal CAC for incremental spend is still efficient.

Source: OpenView Partners 2026 SaaS Benchmarks (February 2026); Visible.vc Q1 2026 (March 2026).

Net Revenue Retention (NRR)
Product-Led Growth Signal
NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100
Do NOT include new logo revenue. This measures only existing customer cohort performance.
≥120%
Best-in-class (PLG)
100–119%
Acceptable
<100%
Revenue shrinking without new logos

NRR above 100% means your existing customers alone would grow the business even if you stopped acquiring new customers. It is the single strongest signal of product-market fit at scale.

Source: Bessemer Venture Partners State of the Cloud 2026 (April 2026).

Burn Multiple
Replaced Rule of 40
Burn Multiple = Net Burn ÷ Net New ARR
Net burn = total cash out minus cash in (operating only). Net new ARR = new ARR − churned ARR.
<1.5×
Best-in-class
1.5–2.5×
Acceptable
>2.5×
Capital inefficient

Example: if you burn $400K/month net and add $300K net new ARR/month, your burn multiple is 1.33× — best-in-class. If you burn $600K and add $200K net new ARR, your burn multiple is 3× — which requires a strong growth narrative to offset.

Source: OpenView Partners 2026 SaaS Benchmarks (February 2026).

Magic Number
S&M Efficiency Signal
Magic Number = Net New ARR (this quarter) ÷ S&M Spend (prior quarter)
One-quarter lag accounts for the lead-to-close sales cycle.
≥1.0
Invest more in S&M
0.75–1.0
Efficient, hold or grow
<0.5
Sales motion broken

The magic number is most useful for making go-to-market investment decisions. If it's above 1.0, you should be spending more on S&M. If it's below 0.5, more S&M spend will just lose money faster — fix the conversion funnel first.

Source: Visible.vc SaaS Metrics Benchmarks Q1 2026 (March 2026).

2026 SaaS Benchmarks Summary

Metric Best in Class Acceptable Below Bar
CAC Payback Period <12 months 12–18 months >24 months
LTV:CAC Ratio ≥5:1 3:1–4:1 <3:1
NRR ≥120% 100–119% <100%
Gross Margin (SaaS) ≥75% 65–74% <60%
Burn Multiple <1.5× 1.5–2.5× >2.5×
Magic Number ≥1.0 0.75–1.0 <0.5

Sources: OpenView Partners 2026 SaaS Benchmarks (February 2026); Visible.vc SaaS Metrics Benchmarks Q1 2026 (March 2026); Bessemer State of the Cloud 2026 (April 2026).

Score Your SaaS Metrics Against These Benchmarks

The Financial Health Scorecard benchmarks your unit economics against investors' actual 2026 standards — and identifies what to fix before your next board meeting or funding round.

Frequently Asked Questions

What is the correct formula for SaaS CAC?
CAC = Total Sales & Marketing Spend ÷ New Customers Acquired (same period). Fully-loaded S&M includes sales rep salaries + commissions + marketing team salaries + all ad spend + tools. Excluding sales salaries understates CAC by 30–60%. Source: OpenView Partners 2026 SaaS Benchmarks (February 2026).
What is a good LTV:CAC ratio for SaaS?
Series A investors expect LTV:CAC ≥3:1. Best-in-class is 5:1 or higher. Below 3:1, the unit economics don't support the business model at scale. Above 5:1 may indicate under-investment in growth. Source: OpenView Partners 2026 SaaS Benchmarks (February 2026).
How do you calculate Net Revenue Retention for SaaS?
NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100. Do not include new logo revenue. Target ≥100% for Series A; best-in-class is ≥120% for product-led-growth companies. Source: Bessemer State of the Cloud 2026 (April 2026).
What is the burn multiple and what is a good benchmark?
Burn Multiple = Net Burn ÷ Net New ARR. Best-in-class at Series A: under 1.5×. Acceptable: 1.5–2.5×. Above 2.5× requires exceptional growth to justify. It has largely replaced the Rule of 40 as the primary capital efficiency metric for early-stage SaaS investors. Source: OpenView Partners 2026 SaaS Benchmarks (February 2026).
What is the SaaS Magic Number and what does it measure?
Magic Number = Net New ARR (this quarter) ÷ S&M Spend (prior quarter). It measures go-to-market efficiency. Above 1.0: invest more in S&M. 0.75–1.0: efficient growth. Below 0.5: the sales motion is broken — more spend won't help. Source: Visible.vc SaaS Metrics Q1 2026 (March 2026).