Stack Ledger

SaaS metrics: NRR, ARR, churn, CAC payback and revenue recognition

A metric is only useful when everyone defines it the same way. These pages give the definition first, then the arithmetic, then the places the definition goes wrong.

PageThe answer in one lineWords
Net revenue retention: formula, example, benchmarksNet revenue retention measures how much recurring revenue a customer group still pays a year later: the formula, a worked example, GRR, ARR and benchmarks.2,445
ARR vs MRR: difference, formula and when to use eachMRR is recurring revenue per month and ARR is the annual figure, but ARR has two definitions. Formulas, a worked example, GAAP revenue and how filers define it.2,449
SaaS churn rate: formula, examples and benchmarksChurn rate is the share of customers or recurring revenue lost in a period: the formulas, a worked example, benchmarks and how public filers define it.3,450
CAC payback period: formula, example and benchmarksCAC payback period is the months of gross profit a new customer needs to repay their acquisition cost: formula, worked example, benchmarks and filer recipes.3,043
SaaS revenue recognition: ASC 606 steps and examplesHow SaaS companies recognize revenue under ASC 606: the five steps, deferred revenue, upgrades, refunds, usage fees, commissions and worked examples.4,749
5 pages in this section16,136