Essential SaaS Metrics Every Founder Should Track
The definitive guide to SaaS metrics including MRR, churn, LTV, CAC, and how to benchmark against competitors.
February 4, 2026
10 min read
In SaaS, metrics are the language of growth. Understanding and tracking the right metrics helps you make better decisions, attract investors, and benchmark against competitors.
The Core SaaS Metrics
- MRR (Monthly Recurring Revenue) — Your predictable monthly revenue from subscriptions. Benchmark: $10K+ to raise seed.
- ARR (Annual Recurring Revenue) — MRR × 12, the standard for annual planning. Benchmark: $1M+ for Series A.
- Churn (Customer Churn Rate) — Percentage of customers who cancel each month. Benchmark: <5% monthly is good.
- LTV (Customer Lifetime Value) — Total revenue expected from a customer. Benchmark: LTV:CAC > 3:1.
- CAC (Customer Acquisition Cost) — Total cost to acquire one customer. Benchmark: Payback < 12 months.
- NRR (Net Revenue Retention) — Revenue from existing customers after churn and expansion. Benchmark: >100% is excellent.
How to Benchmark Against Competitors
- Public data — Check press releases, funding announcements, and case studies
- Industry reports — OpenView, KeyBanc, and SaaS benchmarks reports
- Competitor websites — Customer counts, growth claims, and social proof
- Tool estimates — Traffic tools can estimate relative size and growth
Pro Tip: Focus on trends, not absolute numbers. A competitor growing faster than you is a bigger threat than one that's currently larger.