What metrics should SaaS companies track?

<span data-sheets-value="{"1":2,"2":"SaaS companies should track important metrics like MRR (monthly recurring revenue), CAC (customer acquisition cost), ARR (annual recurring revenue), lifetime value of a customer, active users, and ARPU (average revenue per user). They should also track cash flow and customers."}" data-sheets-userformat="{"2":15105,"3":{"1":0},"11":4,"12":0,"14":{"1":2,"2":0},"15":"Montserrat","16":8}">SaaS companies should track important metrics like MRR (monthly recurring revenue), CAC (customer acquisition cost), ARR (annual recurring revenue), lifetime value of a customer, active users, and ARPU (average revenue per user). They should also track cash flow and customers.

What is a SaaS performance report?

<span data-sheets-value="{"1":2,"2":"A SaaS performance report refers to a document SaaS companies use to measure how their business has been performing. In this report, SaaS companies use metrics to measure their growth, their future plans, and to understand where are they currently standing vis-à-vis growth. "}" data-sheets-userformat="{"2":15105,"3":{"1":0},"11":4,"12":0,"14":{"1":2,"2":0},"15":"Montserrat","16":8}">A SaaS performance report refers to a document SaaS companies use to measure how their business has been performing. In this report, SaaS companies use metrics to measure their growth, their future plans, and to understand where are they currently standing vis-à-vis growth.

How is SaaS usage measured?

<span data-sheets-value="{"1":2,"2":"There are certain metrics that help determine SaaS usage. As a SaaS company, you can measure usage of active and inactive accounts, spend over time, usage percentage, payment made by per user every month, etc. As a customer, you can find SaaS usage through hours you spent on the platform and how much you're spending behind the platform."}" data-sheets-userformat="{"2":15105,"3":{"1":0},"11":4,"12":0,"14":{"1":2,"2":0},"15":"Montserrat","16":8}">There are certain metrics that help determine SaaS usage. As a SaaS company, you can measure usage of active and inactive accounts, spend over time, usage percentage, payment made by per user every month, etc. As a customer, you can find SaaS usage through hours you spent on the platform and how much you’re spending behind the platform.

SaaS Metrics Report Template

Prepared for:
[Client.FirstName][Client.LastName]
[Client.Company]

Created by:
[Sender.FirstName][Sender.LastName]
[Sender.Company]

Useful resources

Rental and Lease Agreements

FAQ

SaaS companies should track important metrics like MRR (monthly recurring revenue), CAC (customer acquisition cost), ARR (annual recurring revenue), lifetime value of a customer, active users, and ARPU (average revenue per user). They should also track cash flow and customers.

A SaaS performance report refers to a document SaaS companies use to measure how their business has been performing. In this report, SaaS companies use metrics to measure their growth, their future plans, and to understand where are they currently standing vis-à-vis growth.

There are certain metrics that help determine SaaS usage. As a SaaS company, you can measure usage of active and inactive accounts, spend over time, usage percentage, payment made by per user every month, etc. As a customer, you can find SaaS usage through hours you spent on the platform and how much you’re spending behind the platform.

Disclaimer

Materials (e.g. templates, educational articles, blog posts and informational content), made available through PandaDoc, including via any integrations, connectors, extensions, plugins, or third-party AI platforms (e.g. ChatGPT, Claude, or similar tools) are for general information purposes only and are provided "as is." These materials do not constitute legal, regulatory, or compliance advice and should not be construed as such. It is your responsibility to ensure materials meet your specific legal requirements. Consult a qualified attorney licensed in your jurisdiction before relying on these materials. PandaDoc disclaims all warranties, express or implied, including fitness for a particular purpose or non-infringement.

Here, define what your company does in one clear sentence.

In the following tables, insert the appropriate data for each metric in each column.

A simple number doesn’t mean much by itself. That’s why it’s important to provide context around the numbers for “This Month,” so that at a glance, viewers can understand your company’s performance and its general trajectory. Below there are columns for the previous month’s performance, the percentage of change between the two months, and the goal or target number you’re aiming to hit.

RecurringRevenue

New MRR = Only MRR from when a lead converts to a paying customer for the first time.
Expansion MRR = Any increase in the MRR of an existing customer, e.g. an increase in quantity, upgrade to a higher plan, adding another subscription, or a discount expiring.
ChurnMRR = The MRR lost when a customer cancels or fails to renew their subscription.
M/M growth of MRR = The month-over-month growth rate of MRR. ((Last month’s MRR – This Month’s MRR / Last month’s MRR) x 100)

For further information on how to calculate and monitor these metrics, check out the Ultimate SaaS Metrics Cheat Sheet.

For expertise on how to calculate, evaluate, and manage Churn, check out the Ultimate Churn Rate Cheat Sheet.

Metric	Last Month	This Month	% Change	Goal
MRR at beginning of the month
New MRR
Expansion MRR
Churn MRR

Cashflow

Cashin = Total revenues coming in to the business for the month.
Cashout = Total expenses for the month.
Netcash burn = The net amount of venture capital you are spending every month. (Cash in – Cash out)
Runway at current burn = How many months you can continue to operate the business with the current amount of cash and current burn rate. (Total cash on hand / Net cash burn)

Metric	Last Month	This Month	% Change	Goal
Cash coming in
Cash coming out
Net cash burn
Runway at current burn (mos.)

Customers

Customers =The number of active customers you have.
Trial-to-paid conversion rate = The rate at which free trial users convert to paying customers. If you operate with a Freemium model, you can adjust this metric accordingly.
Average Revenue Per Account (ARPA) = The average MRR across your active customers. (SUM of all customers’ MRR / Number of customers)
Average Sale Price = The average MRR of new customers at the moment they convert to a paid account.
Customer Lifetime Value (LTV)= An estimate of the average total value of a customer over their lifetime, from sign up to churn. There are various ways to calculate this, so please check the UltimateSaaS LTV Cheat Sheet to learn more and choose what suits your business.
M/M growth rate of new customers = The percentage of growth from last month to this month. This indicates the trajectory and velocity of your new customer growth. (Last month’s Customers – This Month’s Customers / Last month’s Customers x 100)

Many of these metrics are also on the Ultimate SaaS Metrics Cheat Sheet! If you want to learn in-depth about LTV in particular, check out the Ultimate SaaS LTV Cheat Sheet.

Metric	Last Month	This Month	% Change	Goal
Customers
Trial-to-paid conversion rate
Average Revenue Per Account (ARPA)
Average Sale Price

available