Free Calculator · Investor-grade
SaaS investor metrics. Without the spreadsheet.
Rule of 40, Magic Number, Burn Multiple, Quick Ratio, NRR, payback — with Bessemer and OpenView benchmarks side by side.
Inputs
Results
Rule of 40
60
Best-in-class
Magic Number
3.56
Invest more
Burn Multiple
1.5
OK
Quick Ratio
4
Healthy
NRR
100%
≥ 120% = best-in-class
CAC Payback
11.11 mo
target ≤ 12 mo
Benchmarks (source: Bessemer / OpenView)
- • Rule of 40: ≥ 40 healthy · ≥ 60 best-in-class
- • Magic Number: ≥ 1 invest more · 0.5–1 optimize · < 0.5 fix funnel
- • Burn Multiple: < 1 amazing · 1–2 OK · > 2 suspect
- • Quick Ratio: ≥ 4 healthy · 2–4 mixed · < 2 churn drag
FAQ.
What is the Rule of 40?+
Rule of 40 = growth rate (%) + free cash flow margin (%). Healthy SaaS companies score ≥ 40. Below 30 is a red flag; above 60 is best-in-class. Investors use it as a single trade-off between growth and profitability.
What is the SaaS Magic Number?+
Magic Number = (Net new ARR in a quarter × 4) ÷ S&M spend in the prior quarter. ≥ 1 means each $1 of S&M creates ≥ $1 of ARR in the year — invest more. < 0.5 means S&M isn't paying back — fix the funnel first.
What is Burn Multiple?+
Burn Multiple = Net burn ÷ Net new ARR. < 1 is amazing, 1–1.5 is great, 1.5–2 is OK, > 2 is suspect. It tells you how efficiently you're converting cash into recurring revenue.
What is a good Quick Ratio for SaaS?+
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churn MRR + Contraction MRR). ≥ 4 is healthy growth. < 2 means churn is eating new ARR — fix retention before scaling acquisition.
What is NRR and why does it matter?+
NRR (Net Revenue Retention) measures revenue from existing customers including expansion, minus churn and contraction. ≥ 120% is best-in-class; investors use NRR as the single best predictor of long-term value because it's growth that costs almost nothing.
Where does Catch before they bounce fit in?+
These metrics need accurate revenue-per-customer data. Catch before they bounce ties revenue back to the originating visitor — so when you compute payback, magic number, or LTV, the numbers come from real attribution, not allocation guesses. Starting at $5/month.