North Metric

    SaaS metrics,one definition each.

    The metrics investors and acquirers check, from MRR and churn rate to NRR and GRR, each with a plain definition and its formula.

    All metrics27SaaS metrics24Usage metrics3
    IN SHORT

    SaaS metrics show how a subscription business grows and keeps revenue. The key ones: MRR, the sum of active subscription MRRs; customer churn rate, the share of customers lost in a period; gross MRR churn rate, MRR lost to churn and contraction; net MRR retention (NRR), MRR kept after all changes; and gross MRR retention (GRR), MRR kept before expansion.

    SAAS METRIC

    Monthly recurring revenue (MRR)

    MRR = sum of each active subscription's normalized monthly amount, net of discountsMonthly Recurring Revenue — sum of all active subscription MRRs.Open metric →    SAAS METRIC

    Annual recurring revenue (ARR)

    ARR = MRR × 12Annual Recurring Revenue — MRR multiplied by 12.Open metric →    SAAS METRIC

    MRR movement

    MRR Movement = New MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churn MRRNet MRR change from new, expansion, churn, contraction, and reactivation.Open metric →    SAAS METRIC

    Net cash flow

    Net Cash Flow = Total Cash Received − Total Refunds − Total FeesActual money received from paid invoices, minus refunds and processing fees.Open metric →    SAAS METRIC

    Customer churn rate

    Customer Churn Rate = ((Churned − Joined & Churned − Reactivated) ÷ Customers at Start) × 100Percentage of customers lost in the period.Open metric →    SAAS METRIC

    Net MRR retention (NRR)

    NRR = (Starting MRR + Expansion + Reactivation − Contraction − Net Churn) ÷ Starting MRR × 100Percentage of MRR retained after all changes. Above 100% means net expansion.Open metric →    SAAS METRIC

    Gross MRR retention (GRR)

    GRR = (Starting MRR − Contraction MRR − Net Churn MRR) ÷ Starting MRR × 100Percentage of MRR retained before expansion. Always ≤ 100%. Base retention health.Open metric →    SAAS METRIC

    Net MRR churn rate

    Net MRR Churn Rate = (Churn MRR + Contraction MRR − Expansion MRR − Reactivation MRR) ÷ Starting MRR × 100Net revenue churn as percentage of MRR — negative means net expansion.Open metric →    SAAS METRIC

    Gross MRR churn rate

    Gross MRR Churn Rate = (Churn MRR + Contraction MRR) ÷ Starting MRR × 100Percentage of MRR lost to churn and contraction, before accounting for expansion.Open metric →    SAAS METRIC

    Customer lifetime value (CLV)

    CLV = ARPA ÷ Monthly Customer Churn RateEstimated revenue from a typical customer before they churn.Open metric →    SAAS METRIC

    Average revenue per account (ARPA)

    ARPA = Total MRR ÷ Active Paid SubscriptionsAverage monthly revenue per paid account. Gauges monetization depth.Open metric →    SAAS METRIC

    Average sale price (ASP)

    ASP = New Business MRR ÷ New Paid SubscriptionsAverage MRR per new subscription. Tracks deal-size trends.Open metric →    SAAS METRIC

    Quick ratio

    Quick Ratio = (New Business MRR + Expansion MRR) ÷ (Churn MRR + Contraction MRR)Ratio of growth MRR to lost MRR — above 4 is excellent.Open metric →    SAAS METRIC

    Trial-to-paid conversion

    Conversion Rate = (Trials Converted to Paid ÷ Total Trials Ended) × 100Percentage of trial users that become paying customers.Open metric →    SAAS METRIC

    Failed charges

    Failed Charges = Sum of amounts from failed/open invoicesSum of amounts from failed or open invoices. Revenue at risk from payment failures.Open metric →    SAAS METRIC

    Refunds

    Refunds = Sum of all refund amounts issued in the periodTotal refund amounts issued in the period. Monitors revenue leakage.Open metric →    SAAS METRIC

    Active paid subscriptions

    Active Paid Subscriptions = COUNT(active subscriptions where price > $0)Count of active paid subscriptions. Size of your paying customer base.Open metric →    SAAS METRIC

    New paid subscriptions

    New Paid Subscriptions = COUNT(subscriptions with first paid invoice in period)Count of new paid subscriptions added in the period.Open metric →    SAAS METRIC

    MRR growth rate (MoM)

    MRR Growth Rate = (MRR at end − MRR at start) ÷ MRR at start × 100How fast MRR grew this month, as a percentage of where it started.Open metric →    SAAS METRIC

    Expansion rate

    Expansion Rate = Expansion MRR ÷ Starting MRR × 100MRR added by existing customers who upgraded, as a share of starting MRR.Open metric →    SAAS METRIC

    Contraction rate

    Contraction Rate = Contraction MRR ÷ Starting MRR × 100MRR lost to downgrades from customers who stayed, as a share of starting MRR.Open metric →    SAAS METRIC

    Reactivation rate

    Reactivation Rate = Reactivation MRR ÷ Churned MRR × 100MRR won back from returning customers, against MRR lost to cancellations.Open metric →    SAAS METRIC

    Customer upgrade rate

    Upgrade Rate = Customers who upgraded ÷ Customers at start × 100Share of customers at the start of the period who moved to a bigger plan.Open metric →    SAAS METRIC

    Customer downgrade rate

    Downgrade Rate = Customers who downgraded ÷ Customers at start × 100Share of customers at the start of the period who moved to a smaller plan.Open metric →    USAGE METRIC

    Usage revenue

    Usage Revenue = Sum of metered line items on invoices in the periodTotal revenue from metered/usage-based line items.Open metric →    USAGE METRIC

    Metered ARPU

    Metered ARPU = Usage Revenue ÷ Metered customers with usageAverage revenue per active metered customer.Open metric →    USAGE METRIC

    Idle customer rate

    Idle Customer Rate = Metered subscriptions with no usage ÷ All metered subscriptions × 100Percentage of metered customers with zero usage.Open metric →
    01EXPLAINED

    Billing tells you what.Usage tells you why.

    Two families of metrics, read together. Here’s what each one measures and when to use it.

    What are SaaS metrics?

    SaaS metrics measure revenue: how much recurring revenue you have, how much you keep, and what it costs to grow it. They come straight from your billing system: for most teams, Stripe.

    The core set is MRR, net and gross revenue retention, churn rate and CAC payback. Together they answer one question: is the business compounding, or leaking?

    What are usage metrics?

    Usage metrics measure behaviour: who logs in, which features they use, and how many seats are active. They come from your product events, not your invoices.

    They move first. Usage usually drops weeks before revenue does, which makes usage metrics the early warning for every SaaS metric on this page.

    02FAQ

    Fair questions.Straight answers.

    For a subscription business: MRR, customer churn rate, revenue churn, net revenue retention (NRR) and gross revenue retention (GRR). Together they show how fast you grow, how much you lose and how much existing customers expand. NRR is often the first one investors ask about.

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