Tracking the right Key Performance Indicators (KPIs) is essential for SaaS companies to monitor growth, optimize operations, and align cross-functional teams. Below is a comprehensive KPI glossary for modern SaaS technology companies covering everything from revenue metrics to product adoption and operational efficiency.
Here is our comprehensive KPI glossary with corresponding formulas (use ‘Command +F’ to find a metric quickly):
1. Monthly Recurring Revenue (MRR)
Definition: A crucial metric for SaaS companies.
Formula: Sum of revenue from all active subscriptions in a month
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2. Annual Recurring Revenue (ARR)
Definition: A crucial metric for SaaS companies.
Formula: Sum of revenue from all active subscriptions in a month* 12
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3. Churn Rate
Definition: A crucial metric for SaaS companies.
Formula: (Customers Lost in Period / Total Customers at Start) * 100
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4. Churn
Definition: A crucial metric for SaaS companies.
Formula: Previous period ARR from customers who discontinued their subscription in the current period.
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5. Net Revenue Retention (NRR)
Definition: A crucial metric for SaaS companies.
Formula: (Revenue from existing customers + expansions – churned revenue) / Starting Revenue
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6. Net Dollar Retention (NDR) Trailing Period
Definition: A crucial metric for SaaS companies.
Formula: Current ARR from customers active in a specific period / ARR from the same customers in that period
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7. Net Dollar Retention (NDR) Cohorted
Definition: A crucial metric for SaaS companies.
Formula: Current ARR from customers active in a specific period / ARR from the same customers 1, 3, 6, or 12 months later.
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8. Net Dollar Retention (NDR) Renewal
Definition: A crucial metric for SaaS companies.
Formula: Current ARR from customers’ expiring contract / ARR from the same customers in their new contract
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9. Customer Acquisition Cost (CAC)
Definition: A crucial metric for SaaS companies.
Formula: Total Sales & Marketing Costs / Number of New Customers
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10. Customer Lifetime Value (CLV)
Definition: A crucial metric for SaaS companies.
Formula: (Average Revenue per User * Gross Margin %) / Churn Rate
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11. CAC Payback Period
Definition: A crucial metric for SaaS companies.
Formula: CAC / Average MRR per Customer
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12. Logo Retention Rate
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Definition: A crucial metric for SaaS companies.
Formula: (Customers Retained / Starting Customers) * 100
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13. Average Contract Value (ACV)
Definition: A crucial metric for SaaS companies.
Formula: Total Contract Value / Number of Contracts
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14. Sales Efficiency (Magic Number)
Definition: A crucial metric for SaaS companies.
Formula: (New ARR * 4) / Sales & Marketing Spend
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15. Product Adoption Rate
Definition: A crucial metric for SaaS companies.
Formula: (Number of Active Users / Total Signups) * 100
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16. Feature Adoption Rate
Definition: A crucial metric for SaaS companies.
Formula: (Number of Users for a Feature / Total Users) * 100
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17. Expansion Revenue
Definition: A crucial metric for SaaS companies.
Formula: Revenue from Upsells & Cross-Sells / Total ARR
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18. Customer Health Score
Definition: A crucial metric for SaaS companies.
Formula: Weighted average of product usage, engagement, and support metrics
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19. Gross Revenue Retention (GRR)
Definition: A crucial metric for SaaS companies.
Formula: (Revenue Retained – Churned Revenue) / Starting Revenue
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20. Net Promoter Score (NPS)
Definition: A crucial metric for SaaS companies.
Formula: % Promoters – % Detractors
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21. Opportunities Created
Definition: A crucial metric for SaaS companies.
Formula: Total number of sales opportunities in period
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22. Pipeline Value
Definition: A crucial metric for SaaS companies.
Formula: Total value of all open deals in sales pipeline
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23. Weighted Pipeline Value
Definition: A crucial metric for SaaS companies.
Formula: Pipeline value weighted by stage
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24. Stage Conversion Rate
Definition: A crucial metric for SaaS companies.
Formula: Percentage of opportunities that progress to the next stage
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25. Stage Win Rate
Definition: A crucial metric for SaaS companies.
Formula: Percentage of deals in stage that are eventually won
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26. Average Time in Stage
Definition: A crucial metric for SaaS companies.
Formula: Average time a sales opportunity or deal stays in a stage
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27. Pipeline Waterfall
Definition: A crucial metric for SaaS companies.
Formula: Changes and movement in a sales pipeline
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28. Compounded Monthly Growth Rate (CMGR)
Definition: A crucial metric for SaaS companies.
Formula: CMGR = (ARR at the current month ÷ ARR n months ago) raised to the power of (1 ÷ n) minus 1.
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29. Year over Year (YoY)
Definition: A crucial metric for SaaS companies.
Formula: The measure of a metric from the previous year to the current year
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30. Retained Revenue
Definition: A crucial metric for SaaS companies.
Formula: Sum of ARR in the current period
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How are we doing? We’re about half way through our KPI glossary. Let us know in the comments!
31. Period over Period
Definition: A crucial metric for SaaS companies.
Formula: The measure of a metric from any two distinct time periods
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32. Contracted Annual Recurring Revenue (cARR)
Definition: A crucial metric for SaaS companies.
Formula: Total contracted ARR includes customers starting from their ‘close date’, or the date that sale closes.
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33. Live annual recurring revenue (Live ARR)
Definition: A crucial metric for SaaS companies.
Formula: Total ARR counts the beginning of a contract from the ‘start date’, the first day services are being rendered.
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34. Resurrected recurring revenue (ARR or MRR)
Definition: A crucial metric for SaaS companies.
Formula: ARR/MRR added from customers who have been active in a previous period, but not the most recent period.
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35. Revenue Contraction
Definition: A crucial metric for SaaS companies.
Formula: Lost ARR from customers who did not churm
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36. New Revenue
Definition: A crucial metric for SaaS companies.
Formula: The sum of ARR from new customers in a period
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37. Net New Revenue
Definition: A crucial metric for SaaS companies.
Formula: The sum of ARR from new customers, resurrected customers, and expansion customers in a period, minus contraction, and minus churn.
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38. Total Contract Value (TCV)
Definition: A crucial metric for SaaS companies.
Formula: Sum of all active, non-annualized contract values, including any mid-contract changes (expansion or contraction), and incorporating non-recurring revenue in the total value.
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39. Bookings
Definition: A crucial metric for SaaS companies.
Formula: New sales revenue + expansions revenue + renewed revenue
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40. Customer Concentration
Definition: A crucial metric for SaaS companies.
Formula: Cumulative Percentage of Revenue = (Sum of Revenue from Top i Customers ÷ Total Revenue) × 100
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41. Billings
Definition: A crucial metric for SaaS companies.
Formula: Total Value of invoices sent to customers in a period.
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42. Gross Dollar Retention (GDR)
Definition: A crucial metric for SaaS companies.
Formula: The lesser of current ARR and ARR in a specific past period from customers active in that period / ARR from those customers in that past period.
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43. ARR up for renewal
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Definition: A crucial metric for SaaS companies.
Formula: ARR from expiring customer contracts
44. Customers up for renewal
Definition: A crucial metric for SaaS companies.
Formula: Count of customers with expiring contracts
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45. Renewal
Definition: A crucial metric for SaaS companies.
Formula: ARR (or count) of expiring customer contracts / ARR (or count) of renewal customer contracts
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46. ARR per employee
Definition: A crucial metric for SaaS companies.
Formula: ARR / Headcount
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47. Monthly Active Users (MAU)
Definition: A crucial metric for SaaS companies.
Formula: Total active users in a given month
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Daily Active Users (DAU)
Definition: A crucial metric for SaaS companies.
Formula: Total active users on a given day
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48. Weekly Acitive Users (WAU)
Definition: A crucial metric for SaaS companies.
Formula: Total active users in a given week
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49.DAU/MAU
Definition: A crucial metric for SaaS companies.
Formula: Total active users in a day/total active users in a month
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50. Headcount
Definition: A crucial metric for SaaS companies.
Formula: Total number of employees
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51. Burn
Definition: A crucial metric for SaaS companies.
Formula: Change in cash balance over a period
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52. Runway
Definition: A crucial metric for SaaS companies.
Formula: Total operating months remaining current cash balance and burn
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53. Burn Multiple
Definition: A crucial metric for SaaS companies.
Formula: -Burn/NetNew ARR
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54. Net Income
Definition: A crucial metric for SaaS companies.
Formula: Revenue – All expenses
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55. Lifetime Value / Customer Acqusition Cost Ratio (LTV/CAC Ratio)
Definition: A crucial metric for SaaS companies.
Formula: (Annual contract value + gross margin/chrun rate) / (total sales and marketing expenses/number of new customers acquired)
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56. Gross Profit
Definition: A crucial metric for SaaS companies.
Formula: Revenue minus Cost of goods sold
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57. Gross Margin
Definition: A crucial metric for SaaS companies.
Formula: Gross profit divided by Revenue
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58. New Sales ARR / S&M
Definition: A crucial metric for SaaS companies.
Formula: New Sales ARR divided bySales and Marketing Expenses
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59. S&M % of Revenue
Definition: A crucial metric for SaaS companies.
Formula: S&M Expenses divided by Revenue
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60. R&D % of Revenue
Definition: A crucial metric for SaaS companies.
Formula: R&D Expenses divided by Revenue
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61. G&A % of Revenue
Definition: A crucial metric for SaaS companies.
Formula: G&A Expenses divided by Revenue
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In Closing;
The KPIs in this KPI glossary are the lifeline of any SaaS technology company. By tracking the right metrics from this KPI glossary—from revenue growth and customer retention to operational efficiency—you can gain valuable insights that drive smarter decisions, stronger performance, and sustainable growth. Whether you’re optimizing sales efficiency, reducing churn, or improving product adoption, this KPI Glossary will ensure you have a clear understanding of the KPIs essential for aligning your teams and achieving your business goals. We hope this KPI Glossary made it easier for you to identify the right metrics to measure.
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