Guides

What Is a Good Net Revenue Retention? (2026 Benchmarks)

What counts as good net revenue retention in 2026? Directional NRR benchmarks by stage, NRR vs GRR, a worked example, and the levers that move it.

SaaS Churn Rate: How to Calculate It Right (Monthly vs Annual)

Calculate SaaS churn rate correctly: customer vs revenue churn, the monthly-to-annual compounding formula, cohort pitfalls, and 2026 benchmarks.

CAC Payback Period: Formula, Benchmarks & How to Improve It

CAC payback period explained: the gross-margin-adjusted formula, 2026 benchmarks by stage and segment, a worked example, and five levers to shorten it.

The Rule of 40, Explained — Plus the Weighted Variant

What the Rule of 40 measures, which profit metric to use, and why the weighted variant multiplies growth by 1.33x — worked examples plus 2026 benchmarks.

LTV:CAC Ratio: Why 3:1 Is the Benchmark (and When It Lies)

Why 3:1 is the SaaS LTV:CAC benchmark, when high ratios signal underinvestment, and the LTV inflation tricks that break the math — with 2026 medians.

Burn Rate & Runway: How Long Until Default Alive?

Gross vs net burn, default alive vs default dead, and why hiring plans wreck naive runway math — with worked examples and 2026 SaaS benchmarks.

Break-Even ROAS: The Ad Metric That Decides Profitability

Break-even ROAS = 1 ÷ contribution margin. Learn the one-step formula, set a target ROAS above it, and see why platform ROAS overstates profit.

SaaS Magic Number: The Sales-Efficiency Metric Investors Check

The SaaS magic number explained: the quarter-lag formula, what 0.5 / 0.75 / 1.0 mean, how it differs from CAC payback, and when to scale sales spend.