# SaaS Metrics Published articles for SaaS Metrics. This is one page of public article previews, not the complete archive. Follow Next page to continue. Summaries are not the original full articles. ## Current Ratio Formula Explained (with SaaS Examples) DevFeed: [Current Ratio Formula Explained (with SaaS Examples)]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-21T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance]() Tags: [2026](), [accelerate](), [account](), [accounting](), [accounts-payable](), [accounts-receivable](), [acquisition](), [adoption](), [all](), [deferred](), [examples](), [finance](), [how-to](), [means](), [ratio](), [revenue](), [saas](), [saas-metrics](), [series](), [series-b](), [understand](), [with]() ### AI overview The current ratio is current assets divided by current liabilities, but SaaS annual prepayments can make the standard figure look weaker because deferred revenue is recorded as a liability even though it is generally fulfilled by providing service rather than repaid in cash. The article recommends tracking both the standard ratio and an adjusted ratio excluding deferred revenue, while checking burn and runway because a balance-sheet snapshot does not show whether near-term cash needs are covered. It also says pending Merchant of Record payouts belong in receivables until deposited; omitting them understates current assets, while cash-only views can miss funds in transit. Examples show adjusted ratios substantially above standard ratios at Seed, Series A, and Series B stages. The article cautions that deferred revenue still represents a service obligation, and that timing, collections, churn, and revenue quality affect how useful the ratio is. ### Source excerpt Learn how to calculate the current ratio, understand what it means for SaaS companies with deferred revenue and annual prepayments, and see worked examples at Seed through Series B. ## Quick Ratio Formula: Definition, Examples, and SaaS Use Cases DevFeed: [Quick Ratio Formula: Definition, Examples, and SaaS Use Cases]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-21T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance](), [Use Cases for Every Cloud Service Model]() Tags: [accounting](), [benchmarks](), [examples](), [finance](), [growth](), [health](), [ratio](), [saas](), [saas-metrics]() ### AI overview The article distinguishes two metrics called the quick ratio. The accounting acid-test ratio, (current assets − inventory) / current liabilities, measures short-term liquidity; a stricter version also excludes prepaid expenses. The SaaS quick ratio, (new MRR + expansion MRR) / (churned MRR + contraction MRR), measures revenue added per dollar lost. Examples give ratios of 3.0 for $12,000 added against $4,000 lost and 1.0 when additions and losses are both $5,500. Benchmarks are context-dependent: 4.0 is cited as a common target, while mature companies may grow efficiently around 2.5-3.5; trends and company stage matter. The article recommends tracking monthly, using rolling three- or six-month averages, segmenting customers, and including only recurring revenue consistently. Improvement comes from growing expansion revenue or reducing losses, including involuntary churn; it describes Dodo Payments as automating retry orchestration, grace periods, and manual retries. ### Source excerpt Learn the quick ratio formula for both accounting liquidity and SaaS growth health, with worked examples, benchmarks, and strategies to improve your ratio. ## Revenue Formula: How to Calculate Revenue (with SaaS Examples) DevFeed: [Revenue Formula: How to Calculate Revenue (with SaaS Examples)]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-21T00:00:00Z Content type: tutorial Language: en Sources: [Dodo Payments Blog]() Topics: [Finance](), [API Monetization](), [API Business Models]() Tags: [accounting](), [annual-recurring-revenue](), [api](), [billing](), [billings](), [finance](), [growth](), [revenue](), [saas](), [saas-metrics]() ### AI overview Revenue is Price x Quantity Sold, but SaaS businesses need different measures as pricing and accounting become more complex. MRR is active subscribers x average monthly revenue per subscriber, and ARR is MRR x 12; usage revenue sums units consumed x unit price, with hybrid plans adding overages to a base fee. Refunds, chargebacks and discounts reduce revenue, while taxes collected for authorities are pass-through liabilities. Billings and cash received can exceed recognized revenue: annual subscription revenue is recognized over the service period, and usage revenue when usage occurs. The source distinguishes payment gateways, where the business is seller and handles tax and chargebacks, from Merchant of Record services, which handle tax remittance and pay out net of fees and deductions. It says the relevant measure and level of detail depend on the question and business stage. ### Source excerpt Learn the revenue formula, how to calculate revenue for SaaS businesses, and which variations - total, recurring, net, usage-based - apply at each growth stage. ## Accrued Revenue: Definition, Journal Entries, and SaaS Examples DevFeed: [Accrued Revenue: Definition, Journal Entries, and SaaS Examples]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-21T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance](), [API Monetization](), [API Business Models]() Tags: [accounting](), [accounts-receivable](), [api](), [asset](), [assets](), [balance-sheet](), [billing](), [cash-flow](), [compliance](), [deferred](), [dodo](), [enterprise](), [entries](), [examples](), [finance](), [invoicing](), [revenue](), [saas](), [saas-metrics]() ### AI overview Accrued revenue is earned service that has not yet been invoiced. It is recorded as a current asset and recognized as revenue in the period the service is delivered; under the described ASC 606 approach, billing or payment timing does not defer recognition. The entry debits accrued revenue and credits revenue, then reclassifies the asset to accounts receivable when an invoice is issued, and to cash when the customer pays. In SaaS, usage-based billing, mid-cycle upgrades, completed milestones, and contract overages can create unbilled balances. The text distinguishes this from deferred revenue (cash collected before service is delivered) and accounts receivable (invoiced but unpaid). Growing accrued revenue may reflect billing delays or usage data problems, and recognized revenue can precede cash collection. A Merchant of Record such as Dodo Payments may streamline invoicing, metering, proration, tax handling, and reconciliation, but does not remove the need for accrual accounting. ### Source excerpt Learn what accrued revenue is, how to record the journal entry, and why usage-based SaaS companies accumulate unbilled revenue between metering and invoicing. ## LTV to CAC Ratio: The Unit Economics Metric That Decides Funding DevFeed: [LTV to CAC Ratio: The Unit Economics Metric That Decides Funding]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-15T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance]() Tags: [acquisition](), [b2b](), [b2b-saas](), [benchmark](), [benchmarks](), [cac-payback-period](), [cash-flow](), [channel](), [churn](), [churn-rate](), [customer-churn](), [customer-value](), [economics](), [funding](), [growth](), [how-to](), [investors](), [metric](), [ratio](), [saas](), [saas-metrics](), [unit-economics]() ### AI overview The article recommends calculating LTV:CAC with gross-margin-adjusted LTV and fully loaded CAC, including salaries, tools and onboarding, then reviewing the inputs by cohort and acquisition channel. In its example, a SaaS company has a 1.36:1 ratio and 21-month payback; the revenue-only formula gives a higher 1.66:1 ratio, illustrating how omitting serving costs can overstate economics. It treats 3:1 as a common benchmark but says payback and business model matter: cited investor targets are under 18 months for venture-backed firms and under 12 for bootstrapped ones. Suggested levers include reducing churn, increasing ARPU or pricing, improving retention, focusing on organic or higher-intent acquisition, raising conversion and using referrals. The excerpt also gives different ratio ranges for self-serve, sales-assisted and enterprise SaaS. ### Source excerpt Learn how to calculate your LTV:CAC ratio, what benchmarks investors expect, and practical strategies to improve your SaaS unit economics. ## Net Revenue Retention (NRR): The SaaS Metric That Predicts Growth DevFeed: [Net Revenue Retention (NRR): The SaaS Metric That Predicts Growth]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Software as a service](), [Finance]() Tags: [churn](), [customer](), [growth](), [metrics](), [pricing](), [product](), [retention](), [revenue](), [saas](), [saas-metrics]() ### AI overview This article explains net revenue retention (NRR), including its formula, the effects of churn, contraction, and expansion, and how a 106% example indicates growth within an existing customer cohort. ### Source excerpt Understand net revenue retention, how to calculate NRR, what drives it up or down, and why it is one of the clearest signals of SaaS quality. ## Revenue Forecasting for SaaS: Models and Methods DevFeed: [Revenue Forecasting for SaaS: Models and Methods]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: tutorial Language: en Sources: [Dodo Payments Blog]() Topics: [Software as a service](), [Finance]() Tags: [accounting](), [business](), [forecasting](), [future](), [guide](), [how-to](), [implementation](), [learn](), [metric](), [metrics](), [models](), [pipeline](), [revenue](), [saas](), [saas-finance](), [saas-metrics]() ### AI overview A practical guide to SaaS revenue forecasting that explains forecasting models, MRR and ARR logic, cohort behavior, pipeline assumptions, and scenario planning. It also discusses how billing details such as churn, expansion, contractions, annual prepayments, and recognized revenue affect forecast accuracy. ### Source excerpt Learn how to build a SaaS revenue forecasting model using MRR movements, cohort behavior, pipeline assumptions, and scenario planning that finance teams can trust. ## SaaS Cohort Analysis: Track Retention and Revenue by Cohort DevFeed: [SaaS Cohort Analysis: Track Retention and Revenue by Cohort]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: tutorial Language: en Sources: [Dodo Payments Blog]() Topics: [Software as a service](), [data]() Tags: [acquisition](), [analysis](), [churn](), [customers](), [growth](), [how-to](), [metrics](), [pricing](), [retention](), [revenue](), [saas](), [saas-metrics]() ### AI overview This guide explains how SaaS cohort analysis groups customers by characteristics such as signup month, acquisition channel, pricing plan, contract length, geography, or company size, then tracks retention and revenue over time. It shows why aggregate metrics can hide weakening cohorts and how cohort analysis supports earlier diagnosis of churn and revenue-quality problems. ### Source excerpt Learn how to use SaaS cohort analysis to measure retention, expansion, and revenue quality by signup month, plan type, and segment so churn problems become visible early. ## Rule of 40 for SaaS: What It Is and How to Calculate It DevFeed: [Rule of 40 for SaaS: What It Is and How to Calculate It]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: tutorial Language: en Sources: [Dodo Payments Blog]() Topics: [Software as a service](), [Benchmark](), [Finance]() Tags: [benchmark](), [growth](), [margin](), [metrics](), [saas](), [saas-finance](), [saas-metrics]() ### AI overview This article explains the Rule of 40 for SaaS, a benchmark calculated by adding revenue growth and profit margin. It describes how founders and investors use the metric to assess the balance between growth and profitability, while noting that it should not replace deeper analysis. ### Source excerpt Learn what the Rule of 40 for SaaS means, how to calculate it, and how founders can improve the balance between growth and profitability. ## Expansion Revenue: How to Grow Without Acquiring New Customers DevFeed: [Expansion Revenue: How to Grow Without Acquiring New Customers]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance](), [API Monetization](), [API Business Models](), [self-service]() Tags: [acquisition](), [add-ons](), [adoption](), [ai](), [analytics](), [api](), [b2b](), [b2b-saas](), [billing](), [churn](), [conversion](), [customers](), [design](), [growth](), [how-to](), [pricing](), [revenue](), [saas](), [saas-metrics](), [upgrade](), [usage-based-billing]() ### AI overview Expansion revenue grows recurring revenue from existing SaaS customers through plan upgrades, added seats, increased usage, add-ons, and cross-sells. These motions can improve net revenue retention and reduce reliance on new-customer acquisition, but work best after customers reach core value and retention is healthy. Pricing should connect higher spend to visible increases in value; punitive limits can prompt customers to cap usage, downgrade, or leave. The article recommends tracking expansion MRR separately by source alongside retention and conversion metrics, segmented by cohort and plan. Billing friction, weak product signals, and unclear ownership across product, success, and sales can block growth. It describes Dodo Payments as supporting subscriptions, usage-based and hybrid billing, self-serve changes, and webhook-driven upgrades, with stated transaction fees. ### Source excerpt Learn how SaaS companies increase expansion revenue through better pricing, seat growth, usage-based billing, and upgrade design without depending only on new customer acquisition. ## How to Calculate Churn Rate (With Formulas and Examples) DevFeed: [How to Calculate Churn Rate (With Formulas and Examples)]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: tutorial Language: en Sources: [Dodo Payments Blog]() Topics: [Finance](), [Use Cases for Every Cloud Service Model]() Tags: [churn](), [churn-analysis](), [churn-rate](), [customer-churn](), [examples](), [how-to](), [retention](), [saas-metrics]() ### AI overview Calculate customer churn as customers lost during a period divided by customers at the start, multiplied by 100; for example, losing 25 of 500 customers is 5%. Revenue churn captures financial impact: gross churn includes cancellations and downgrades, while net churn subtracts expansion from existing customers. Exclude new customers from the starting base and from expansion, and track mid-period signup cancellations separately or by cohort. For annual contracts, measure churn against renewals due; count failed payments only after the recovery window closes, and separate involuntary from voluntary losses. Segment results by cohort, plan, and billing cadence to make the rate more diagnostic. The excerpt also recommends reporting gross and net revenue churn together, since expansion can mask losses elsewhere in the customer base. ### Source excerpt Learn how to calculate churn rate with clear formulas, examples, and cohort tips so you can measure customer loss accurately and improve retention. ## Churn Rate Analysis: How to Measure, Diagnose, and Fix Customer Churn DevFeed: [Churn Rate Analysis: How to Measure, Diagnose, and Fix Customer Churn]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Data analysis](), [Finance](), [Use Cases for Every Cloud Service Model](), [observability](), [Security Information and Event Management (SIEM)]() Tags: [acquisition](), [activation](), [adoption](), [analysis](), [billing](), [cac-payback-period](), [cancellation](), [cancellations](), [churn](), [churn-analysis](), [churn-rate](), [communication](), [customer](), [customer-churn](), [diagnose](), [drivers](), [growth](), [how-to](), [retention](), [revenue](), [saas](), [saas-metrics]() ### AI overview Churn analysis is useful when it explains who leaves, when, why, and how much revenue is affected; a blended churn percentage alone does not identify what to fix. The article recommends defining customer and revenue churn, separating voluntary cancellations from involuntary payment failures, segmenting by plan, channel, billing cadence, geography, company size, use case, and signup cohort, then mapping churn to customer age and cancellation reasons. Review leading signals such as falling usage, unresolved support tickets, and repeated payment failures, and prioritize causes by MRR impact. It suggests a weekly cross-functional review of churn by segment, failed payment recovery, activation problems, and experiments in onboarding, billing recovery, and packaging. Dodo Payments is described as a Merchant of Record with tax and compliance support, dunning, self-serve payment updates, invoice visibility, and webhooks; the article says it is not a churn analytics tool. ### Source excerpt Learn how to run churn rate analysis for SaaS, diagnose the real drivers of customer loss, and build a retention system that improves recurring revenue. ## CAC Payback Period: How Long Until Customers Pay for Themselves? DevFeed: [CAC Payback Period: How Long Until Customers Pay for Themselves?]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-12T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance]() Tags: [ai](), [ai-infrastructure](), [ai-products](), [billing](), [cac-payback-period](), [churn](), [collections](), [customer-acquisition-cost](), [economics](), [growth](), [saas](), [saas-metrics]() ### AI overview CAC payback is the number of months for a customer's gross profit to recover acquisition cost, calculated as CAC divided by monthly gross profit per customer (MRR x gross margin). The example yields 10 months from $2,000 CAC and $200 monthly gross profit. Use gross profit rather than revenue, and break results out by segment; churn, delivery costs, failed payments, and delayed expansion can make average payback misleading or prevent recovery. The article recommends improving conversion quality, onboarding, pricing and ARPU, retention, collections, and expansion timing. It gives no universal benchmark: acceptable payback depends on segment, cash position, retention, and expansion. It also describes Dodo Payments' Merchant of Record billing, payments, tax, and compliance offering, with stated transaction fees and a 5% charge on recovered revenue. ### Source excerpt Learn what CAC payback period means, how to calculate it, and how SaaS teams can shorten the time it takes to recover customer acquisition cost. ## ARPU (Average Revenue Per User): The SaaS Guide DevFeed: [ARPU (Average Revenue Per User): The SaaS Guide]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-11T00:00:00Z Content type: tutorial Language: en Sources: [Dodo Payments Blog]() Topics: [Software as a service](), [Benchmark]() Tags: [benchmarks](), [guide](), [how-to](), [metrics](), [monetization](), [pricing-strategy](), [saas-metrics]() ### AI overview This guide explains Average Revenue Per User (ARPU), including its definition, calculation, appropriate benchmarking, and role in evaluating SaaS pricing, packaging, expansion, and growth efficiency. It emphasizes that ARPU is a useful signal but can mislead when customer segments and denominators are not handled consistently. ### Source excerpt A complete ARPU guide for SaaS founders covering the formula, how to calculate average revenue per user, segment benchmarks, and ways to improve ARPU sustainably. ## MRR (Monthly Recurring Revenue): How to Calculate and Grow It DevFeed: [MRR (Monthly Recurring Revenue): How to Calculate and Grow It]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-11T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance](), [Use Cases for Every Cloud Service Model]() Tags: [acquisition](), [billing](), [churn](), [components](), [growth](), [monthly](), [retention](), [revenue](), [saas](), [saas-metrics]() ### AI overview MRR measures normalized monthly recurring subscription value, not cash collected: an annual $1,200 plan contributes $100 MRR, while one-time fees and nonrecurring services are excluded. To track change, add new, expansion, and reactivation MRR to starting MRR, then subtract contraction and churned MRR. Segmenting results and pairing them with churn, retention, expansion, and acquisition measures can reveal whether growth depends on new sales or existing customers. The text recommends sustainable growth through efficient acquisition, early retention work, pricing that supports expansion, and recovery of failed payments. It describes flat, seat-based, usage-based, and hybrid pricing as having different effects on expansion and predictability; variable usage charges require clear rules for what counts as MRR. It also presents Dodo Payments as supporting subscription and hybrid billing, dunning, and tax management, with published transaction pricing. ### Source excerpt Learn how to calculate MRR, which MRR components matter most, and how SaaS teams can grow monthly recurring revenue without sacrificing retention or margin. ## Customer Acquisition Cost (CAC): How to Calculate for SaaS DevFeed: [Customer Acquisition Cost (CAC): How to Calculate for SaaS]() Original publisher: [Read original article]() Author: Ayush Agarwal Published: 2026-04-11T00:00:00Z Content type: article Language: en Sources: [Dodo Payments Blog]() Topics: [Finance]() Tags: [benchmark](), [cac-payback-period](), [customer-acquisition-cost](), [growth](), [how-to](), [saas](), [saas-metrics]() ### AI overview SaaS CAC should include the full sales and marketing cost of acquiring new customers, not just ad spend. The article's example totals $90,000 in monthly ads, payroll, tools, and agency costs; divided by 120 new customers, that yields $750 CAC. It recommends excluding product, existing-customer support, and general overhead, then segmenting CAC by channel, customer type, plan, geography, and sales motion. There is no universal good CAC: evaluate payback against gross profit alongside retention, conversion, and revenue per account. Suggested levers include refining the ideal customer profile, building organic acquisition with its staffing and tooling costs counted, improving checkout and onboarding conversion, and increasing ARPU or upgrades. The excerpt also notes that global growth can carry payment, tax, and support costs that affect actual economics. ### Source excerpt Learn how to calculate customer acquisition cost for SaaS, what to include in CAC, how to benchmark it, and how to improve payback without hurting growth.