Product-Led Growth Metrics

A list of the key metrics you need to have at hand to grow a healthy SaaS business

Revenue metrics

Annual Contract Value
ACV is the average annualized revenue per customer contract. If you compare Annual Contract Value to Customer Acquisition Cost, you can see how long it takes to pay back the cost of acquiring a customer.
Annual Run Rate
ARR is your monthly recurring revenue (MRR) annualized. It is a prediction of how much revenue your company will generate annually based on your current MRR.
Average Contract Length
ACL is the average length of a customer contract. To surface it you need to add the total number of contracts in months, you will then divide by the entire number of contracts to get your average contract length figure.
Average Revenue Per User
ARPU is the average amount of revenue you earn from each of your active customers monthly. Notice that ARPU is calculated based on active customers, not total users.
Churn MRR
Churn MRR is the percentage of revenue lost during a given period (usually monthly). It includes revenue lost from cancelled customers, downgrades, and other lost monthly revenue.
Committed Monthly Recurring Revenue
CMRR is the value of the recurring portion of subscription revenue. For term-based subscription businesses, this is the portion of subscription revenue that is recognized each month.
Customer Acquisition Cost
CAC is the amount of money you spend to acquire a new customer. To calculate CAC, divide all the expenses to acquire customers by the total number of customers acquired over a certain period of time.
Customer Lifetime Value
CLV is an estimate of how much revenue will be generated from an average customer before churn. It is calculated by dividing the average monthly MRR per customer with User Churn Rate.
Monthly Recurring Revenue
MRR is the amount of revenue you get from your customers on a monthly basis. The basic calculation for MRR is simple. You just add up all the revenue you get from your active customers.
New Monthly Recurring Revenue is a metric that focuses of the revenue gained from new customers.
Retention Rate
Retention rate is the percentage of customers active in a given period who are still customers in the next. To get it, divide your number of active users across a period by the number of users in the previous period.
Time to Value
Time to Value (TTV) is the amount of time it takes a new customer to experience value from your product.
Total Contract Value
TCV is the lifetime value of a contract. It shows how much your business can expect to earn from a customer once contract is signed. You need to multiply the MRR with the contract term length.

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