This content originally appeared on DEV Community and was authored by Sonu Goswami
Running a SaaS without understanding your metrics? That’s like sailing a ship blindfolded. Let’s break down the numbers that really matter—with a dash of honesty.
ARR (Annual Recurring Revenue) – The big headline figure you tell investors… and your mom.
Committed ARR – The “maybe someday” revenue hiding in your pipeline.
Growth Rate – That magic percentage everyone brags about at investor meetings.
Rule of 40 – CFOs’ favorite bedtime mantra: growth + profitability = happiness.
CAC Payback Period – How long until your customer actually pays for themselves… spoiler: it’s never fast enough.
Magic Number – Sounds mystical, but really just a ratio to brag about.
ARR per FTE – A metric that screams “we need fewer people… or more revenue.”
Net Dollar Retention (NDR) – The number your Customer Success team frames on their wall.
Sign-ups – Enthusiastic… but mostly free… and possibly ghosting you.
Gross Margin – The real profit hiding behind your shiny ARR.
Burn Multiple – How many dollars you burn to make a dollar appear profitable.
Activation – When your user actually does the thing you built your product for.
Product-Influenced Revenue – The justification for giving away so much free stuff.
North Star Metric – The single number you use to convince your team you’re “winning.”
LTV:CAC – Fun math to show you’re not spending money blindly.
Expansion Revenue – When your existing customers suddenly pay more… or you convince them to.
Gross Dollar Retention (GDR) – The metric that shows how many customers survived the year without ghosting you.
AARRR (Pirate Metrics) – Because SaaS metrics are basically a treasure hunt.
Metrics can feel like alphabet soup—but understanding them (and laughing a little) is what keeps your SaaS ship afloat. ⚓
This content originally appeared on DEV Community and was authored by Sonu Goswami
Sonu Goswami | Sciencx (2025-09-28T09:03:06+00:00) The SaaS Metrics Cheat Sheet You Actually Need 🧩. Retrieved from https://www.scien.cx/2025/09/28/the-saas-metrics-cheat-sheet-you-actually-need-%f0%9f%a7%a9/
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