Summary (TL;DR): Most SaaS dashboards track too many metrics and not enough of the right ones. This guide covers the 6 metrics every founder should review monthly: MRR, burn rate, CAC, churn rate, LTV, and LTV:CAC ratio. Each includes benchmarks, warning signs, and a free calculator.
MRR gets the headline, but burn rate, churn, and LTV:CAC ratio determine whether your SaaS company survives. Most founders track too many metrics and miss the six that actually predict success or failure.
This guide builds the monthly dashboard every SaaS founder needs, with benchmarks, warning signs, and free calculators for each metric. For more on KPI strategy, see our guide on setting and achieving KPIs.
1. Monthly Recurring Revenue (MRR)
MRR is the total predictable revenue your business generates each month from active subscriptions. It's the foundation metric that everything else builds on.
What to track:
- New MRR: Revenue from new customers this month
- Expansion MRR: Additional revenue from existing customers (upgrades, add-ons)
- Churned MRR: Revenue lost from cancellations
- Net new MRR: New + Expansion - Churned (must be positive for growth)
Warning sign: If churned MRR exceeds new MRR for 2+ consecutive months, you have a retention crisis that will compound rapidly.
2. Burn rate and runway
Burn rate is the net cash you spend per month. Runway is how many months you can survive at the current burn rate.
Formula:
- Monthly burn rate = Total expenses - Total revenue
- Runway (months) = Cash in bank / Monthly burn rate
Benchmark: Maintain at least 12-18 months of runway. Below 6 months, fundraising becomes desperate and terms get worse.
Calculate yours with our free burn rate calculator. For scaling strategies that don't require burning faster, see our guide on strategies for business expansion.
3. Customer Acquisition Cost (CAC)
CAC is the total cost to acquire one new customer. Include everything: ad spend, sales salaries, tool costs, content creation, and overhead allocated to marketing and sales.
Formula: Total sales + marketing spend / Number of new customers
Warning sign: If CAC is rising quarter over quarter while growth rate is flat, your acquisition channels are becoming less efficient. Time to diversify or optimize.
Calculate yours with our free CAC calculator.
4. Churn rate
Churn rate is the percentage of customers who cancel in a given period. It's the silent killer of SaaS businesses because it compounds: 5% monthly churn means you lose 46% of your customers every year.
Formula: Customers lost in period / Customers at start of period x 100
Benchmarks:
| Segment | Good monthly churn | Warning level |
|---|---|---|
| Enterprise | <0.5% | >1% |
| Mid-market | <1% | >2% |
| SMB | <3% | >5% |
| Consumer | <5% | >7% |
Calculate yours with our free churn calculator. For retention strategies, see our guide on customer retention strategies.
5. Customer Lifetime Value (LTV)
LTV is the total revenue a customer generates over their entire relationship with your company.
Formula: Average revenue per customer per month / Monthly churn rate
At $100/month average revenue and 3% monthly churn, LTV = $100 / 0.03 = $3,333.
Calculate yours with our free LTV calculator.
6. LTV:CAC ratio
The LTV:CAC ratio tells you whether your growth economics are sustainable.
- Below 1:1: You're losing money on every customer. Stop spending and fix retention or pricing.
- 1:1 to 3:1: Economically viable but tight. Optimize both acquisition and retention.
- 3:1 to 5:1: Healthy. The gold standard for SaaS.
- Above 5:1: You may be under-investing in growth. Consider spending more on acquisition.
Allocate your marketing budget with data
Once you know your CAC by channel, allocate budget to the channels with the best LTV:CAC ratios. Use our free marketing budget allocator to model different allocation scenarios, and track the overall return with our marketing ROI calculator.
Add a calculator widget to your own site to let prospects model their own ROI from your product, turning your metrics expertise into a lead generation tool.
Review monthly, act immediately
Set a monthly metrics review on your calendar. Here's the 30-minute dashboard check:
- MRR trend: Is net new MRR positive and growing? (2 minutes)
- Burn rate: Has it changed? Recalculate runway. (2 minutes)
- Churn: Any spike this month? Investigate immediately. (5 minutes)
- CAC by channel: Which channels got more expensive? Which got cheaper? (5 minutes)
- LTV:CAC ratio: Still above 3:1? If declining, diagnose whether it's a CAC or LTV problem. (5 minutes)
- Action items: One specific thing to improve for next month. (10 minutes)
The founders who survive aren't the ones with the best metrics. They're the ones who check them consistently and act on what they find. For more on business metrics, read our guide on retention metrics that matter.
Sergei Davidov
