Section · 5 articles
Metrics and product-market fit
MRR, ARR, churn, CAC, LTV and product-market fit: the numbers that tell you whether a startup is working.
SaaS metrics that matter: the short list, and when each one starts to countMost dashboards measure everything. Good decisions, and most investors, need about eight numbers.
MRR vs ARR: what each one measures, how to calculate them and which to reportThe same number seen from two distances. What matters is what you let into it.
SaaS churn rate: what good looks like, how to calculate it and why your tools disagreeA small percentage that compounds every month. Measure it honestly before you try to fix it.
LTV:CAC ratio: what a good ratio looks like and how to calculate it honestlyTwo fragile estimates divided by each other. Handled carefully, they tell you how hard you can push growth.
Product-market fit: what it means, how to measure it, and what to do when you are not thereNot a feeling but a measurement: four questions, a threshold, and the discipline to believe the answer.