{"id":31913,"date":"2026-07-17T09:57:01","date_gmt":"2026-07-17T13:57:01","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=31913"},"modified":"2026-07-17T09:57:04","modified_gmt":"2026-07-17T13:57:04","slug":"key-saas-metrics-to-track","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/key-saas-metrics-to-track\/","title":{"rendered":"The essential SaaS business metrics every business should be tracking"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/technology-innovation\/\" class=\"entry-header__link\">Technology &amp; Innovation<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tThe essential SaaS business metrics every business should be tracking\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tFrom revenue and retention to acquisition and growth, tracking essential SaaS metrics is the key to driving business growth, improving decision-making, and staying ahead of the competition. Learn which metrics matter most\u2014and how to track them effectively.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-07-17T09:57:01-04:00\">July 17, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"The essential SaaS business metrics every business should be tracking\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/key-saas-metrics-to-track\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/05\/Joe-Yard-2-crop-350x350.jpg\" class=\"entry-author__image\" alt=\"Joe Church Woods\" \/>\t\t\t\t<span class=\"entry-author__name\">Joe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<section class=\"wp-block-sage-article-update\"><div class=\"sage-article-update__inner\"><p>This article was originally published on July 24, 2025, but has been refreshed and re-published with new content in July 2026.<\/p><\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\">Running a successful SaaS business means staying closely attuned to the Key Performance Indicators (KPIs) that drive growth, customer satisfaction, and financial health.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But with so many metrics to monitor, it can be overwhelming knowing where to start\u2014especially when the most important SaaS metrics span everything from revenue and retention to acquisition efficiency and product engagement. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide breaks down the essential SaaS business metrics you need to keep track of to help make sure your business thrives in today\u2019s competitive landscape.<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>SaaS metrics are KPIs that help software businesses assess performance, track revenue health, benchmark against competitors, and identify areas for improvement across the customer lifecycle. <\/li>\n\n\n\n<li>Core metrics to track include MRR, ARR, churn rate, LTV, CAC, and NRR. These form the baseline for monitoring financial stability and growth. <\/li>\n\n\n\n<li>Growth and efficiency metrics like the Rule of 40, Magic Number, and Burn Multiple reveal whether your business is scaling sustainably, not just growing quickly. <\/li>\n\n\n\n<li>Advanced analytics, including cohort analysis, engagement scoring, and customer health scores, provide predictive visibility into why metrics are moving and where churn risk is building.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-ll-cover\" class=\"wp-block-heading\">Here\u2019s what we\u2019ll cover:<\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-are-saas-metrics\" data-level=\"2\">What are SaaS metrics?<\/a><\/li><li><a href=\"#h-why-saas-metrics-important\" data-level=\"2\">Why SaaS metrics important?<\/a><\/li><li><a href=\"#h-what-are-the-essential-saas-business-metrics-to-track\" data-level=\"2\">What are the essential SaaS business metrics to track?<\/a><\/li><li><a href=\"#h-saas-growth-metrics-and-efficiency-kpis\" data-level=\"2\">SaaS growth metrics and efficiency KPIs<\/a><\/li><li><a href=\"#h-advanced-saas-analytics-cohort-analysis-engagement-scoring-and-customer-health\" data-level=\"2\">Advanced SaaS analytics: cohort analysis, engagement scoring, and customer health<\/a><\/li><li><a href=\"#h-what-are-the-most-important-saas-marketing-and-customer-acquisition-metrics\" data-level=\"2\">What are the most important SaaS marketing and customer acquisition metrics?<\/a><\/li><li><a href=\"#h-track-essential-saas-business-metrics-with-finance-and-subscription-management-software\" data-level=\"2\">Track essential SaaS business metrics with finance and subscription management software<\/a><\/li><li><a href=\"#h-saas-metrics-faqs\" data-level=\"2\">SaaS metrics FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-are-saas-metrics\" class=\"wp-block-heading\">What are SaaS metrics?<strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SaaS metrics are key performance indicators (KPIs) that help software-as-a-service businesses assess performance, benchmark against competitors, and identify areas for improvement. They cover everything from revenue and retention to acquisition efficiency and customer engagement, giving leadership teams a data-driven view of business health across every stage of the customer lifecycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some common SaaS metrics include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monthly Recurring Revenue (MRR)<\/li>\n\n\n\n<li>Annual Recurring Revenue (ARR)<\/li>\n\n\n\n<li>Churn rate (logo and revenue)<\/li>\n\n\n\n<li>Customer Lifetime Value (LTV)<\/li>\n\n\n\n<li>Customer Acquisition Cost (CAC)<\/li>\n\n\n\n<li>Net Revenue Retention (NRR)<\/li>\n\n\n\n<li>CAC-to-LTV ratio<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-why-saas-metrics-important\" class=\"wp-block-heading\">Why SaaS metrics important?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SaaS metrics matter because recurring revenue models create unique visibility challenges that traditional financial reporting wasn&#8217;t designed to solve.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike traditional businesses that generate revenue through one-time sales, SaaS companies depend on recurring revenue streams, like subscriptions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That makes understanding the health of those streams essential for forecasting cash flow, planning for growth, and demonstrating value to investors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By tracking the right SaaS metrics, you can pinpoint what&#8217;s working, spot areas that need attention, and adjust your strategy to better meet customer needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most SaaS companies monitor anywhere from 10 to 24 different performance metrics to evaluate business health, including metrics that measure product-market fit, customer retention, and user engagement. This goes beyond standard <a href=\"https:\/\/www.sage.com\/en-us\/blog\/a-guide-to-generally-accepted-accounting-principles-gaap\/\" target=\"_blank\" rel=\"noreferrer noopener\">GAAP reporting<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consistently <a href=\"https:\/\/www.sage.com\/en-us\/blog\/managing-saas-metrics-throughout-the-company-lifecycle-part-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">tracking SaaS metrics throughout your company\u2019s lifecycle<\/a> will help drive strategic growth and <a href=\"https:\/\/www.sage.com\/en-us\/blog\/saas-metrics-a-cfos-success-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">CFO success<\/a> through better financial visibility, planning, and performance management.<\/p>\n\n\n\n<h2 id=\"h-what-are-the-essential-saas-business-metrics-to-track\" class=\"wp-block-heading\">What are the essential SaaS business metrics to track?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The essential SaaS business metrics to track are the ones that give you a clear, real-time view of revenue health, customer retention, and growth efficiency. For most SaaS companies, that means monitoring MRR, ARR, churn rate, LTV, CAC, and NRR as a baseline, and then layering in more advanced indicators as the business scales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To effectively measure performance and drive sustainable growth, you need to track the key metrics for SaaS companies that span every stage of your operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s a breakdown of the most important SaaS metrics you should monitor:<\/p>\n\n\n\n<h3 id=\"h-1-monthly-recurring-revenue-mrr\" class=\"wp-block-heading\">1. Monthly Recurring Revenue (MRR)<strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MRR is one of the most fundamental SaaS revenue metrics because it measures the revenue your business can expect to generate from subscriptions each month.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>MRR = Total number of customers x Average revenue per customer per month<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your SaaS company has 100 customers, and each customer spends $200 per month, your MRR is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>100 customers x $200 = $20,000<\/strong><\/p>\n\n\n\n<h3 id=\"h-2-annual-recurring-revenue-arr\" class=\"wp-block-heading\">2. Annual Recurring Revenue (ARR)<strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The ARR metric is MRR multiplied by 12, offering a long-term view of your recurring revenue. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s one of the <a href=\"https:\/\/www.sage.com\/en-us\/blog\/essential-metrics-saas-cfos-need-to-drive-growth\/\" target=\"_blank\" rel=\"noreferrer noopener\">essential metrics SaaS CFOs now need<\/a> to understand the bigger picture and assess the overall financial stability of the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ARR = MRR X 12<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ARR is especially useful when evaluating year-over-year growth and communicating performance to investors or stakeholders.<\/p>\n\n\n\n<h3 id=\"h-3-churn-rate-logo-churn-versus-revenue-churn\" class=\"wp-block-heading\">3. Churn rate (logo churn versus revenue churn)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Churn rate measures the percentage of customers who cancel or fail to renew their subscriptions over a period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s one of the most closely watched SaaS reporting metrics because it directly signals the health of your customer relationships and the sustainability of your revenue base.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are two main types of SaaS churn metrics to track:<\/p>\n\n\n\n<h4 id=\"h-logo-churn\" class=\"wp-block-heading\">Logo churn<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This metric measures the percentage of customers lost during a period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Logo churn<\/strong> = <strong>(Customers lost during a period) \/ (Customers at the start of the period)<\/strong><\/p>\n\n\n\n<h4 id=\"h-revenue-churn\" class=\"wp-block-heading\">Revenue churn<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This metric tracks the revenue lost from customers who have churned during the same period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is particularly important because losing high-value customers can significantly impact your bottom line more than losing smaller customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Revenue churn = (Revenue lost due to customer churn during a period) \/ (Total revenue at the start of the period)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A high churn rate (especially revenue churn) can indicate issues with customer satisfaction, onboarding, or product-market fit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monitoring churn alongside <a href=\"https:\/\/www.sage.com\/en-us\/blog\/boost-user-engagement-and-retention-with-saas-metrics\/\" target=\"_blank\" rel=\"noreferrer noopener\">engagement metrics<\/a> gives your team the visibility needed to intervene early and build stronger, longer-lasting customer relationships.<\/p>\n\n\n\n<h3 id=\"h-4-customer-lifetime-value-ltv\" class=\"wp-block-heading\">4. Customer Lifetime Value (LTV)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">LTV represents the total net value a customer brings to your business over the entire relationship.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It helps you understand how much revenue a single customer is expected to generate, guiding decisions around how much you can afford to spend on acquiring and retaining them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes it one of the most important customers <a href=\"https:\/\/www.sage.com\/en-us\/blog\/customer-success-metrics-saas-how-to-measure\/\" target=\"_blank\" rel=\"noreferrer noopener\">success metrics for SaaS startups<\/a> and established businesses alike.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>LTV= (Average MRR per customer x Customer lifetime in months) \u2013 Cost to support customer<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your average MRR is $200 per customer, and the average customer stays for 36 months, the LTV would be: $200 x 36 = $7,200 (before support costs)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">SaaS businesses often refine LTV by factoring in churn rates, gross margins, and other financial variables to make the calculation more accurate.<\/p>\n\n\n\n<h3 id=\"h-5-customer-acquisition-cost-cac-and-cac-payback\" class=\"wp-block-heading\">5. Customer Acquisition Cost (CAC) and CAC payback<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CAC measures the cost of acquiring a new customer and helps you evaluate whether your sales and marketing efforts are delivering profitable returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s one of the most important <a href=\"https:\/\/www.sage.com\/en-us\/blog\/predictive-kpis-for-saas-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">predictive KPIs for SaaS companies<\/a>, as it directly impacts growth planning and financial forecasting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CAC payback period measures how long it takes to recover the cost of acquiring a customer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A shorter payback period indicates a more efficient and scalable model, while a longer one may signal the need to refine your acquisition strategy or pricing structure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>CAC<\/strong> = <strong>Total sales and marketing costs \u00f7 Number of customers acquired<\/strong><\/p>\n\n\n\n<h3 id=\"h-6-cac-to-ltv-ratio\" class=\"wp-block-heading\">6. CAC-to-LTV ratio<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The CAC-to-LTV ratio compares how much you spend to acquire a customer (CAC) with the revenue that customer is expected to generate over their lifetime (LTV).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s one of the core SaaS financial metrics for evaluating the efficiency and profitability of your customer acquisition strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>CAC-to-LTV Ratio<\/strong> <strong>= CAC \u00f7 LTV<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your CAC is $1,000 and your LTV is $3,000, your ratio is 1:3\u2014meaning you earn three dollars for every dollar spent on acquisition. A 1:3 ratio is generally considered a healthy benchmark for scalable SaaS growth.<\/p>\n\n\n\n<h3 id=\"h-7-net-revenue-retention-nrr-and-gross-revenue-retention-grr\" class=\"wp-block-heading\">7. Net Revenue Retention (NRR) and Gross Revenue Retention (GRR)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>NRR<\/strong> measures existing customers\u2019 revenue growth or contraction, accounting for upgrades, downgrades, and churn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>GRR<\/strong> tracks how much revenue is retained from existing customers, excluding upsell or cross-sell.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These metrics provide valuable insight into how effectively you\u2019re expanding revenue within your current customer base.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As part of the key SaaS metrics every finance team should monitor, a high NRR (typically above 100%) signals strong customer retention and successful upselling, while a lower NRR may indicate challenges with churn or product-market fit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Both NRR and GRR play a critical role in <a href=\"https:\/\/www.sage.com\/en-us\/blog\/managing-saas-metrics-throughout-the-company-lifecycle-part-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">managing SaaS metrics throughout the company lifecycle<\/a>, helping finance teams and leadership assess customer value, forecast revenue stability, and refine growth strategies over time.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The Definitive SaaS Buyer\u2019s Guide to Planning Software<\/h2>\n\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-5cf8c4bd-86d1-40d3-a7b4-712a65585d3b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1483132604-1215x810.jpg\" class=\"single-cta__image\" alt=\"Woman using accounts payable KPIs to improve efficiency and reduce costs\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1483132604-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-saas-growth-metrics-and-efficiency-kpis\" class=\"wp-block-heading\">SaaS growth metrics and efficiency KPIs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SaaS growth and efficiency metrics tell you something the core financial metrics can&#8217;t on their own: whether your business is scaling sustainably.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While MRR and ARR show you what you&#8217;re earning, growth and efficiency metrics show you how well you&#8217;re earning it, and whether your current trajectory is something you can maintain or build on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the most important SaaS KPI metrics for measuring the growth and efficiency of your business:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Rule of 40<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Rule of 40 is one of the most widely used benchmarks for evaluating overall SaaS business health. It states that a SaaS company&#8217;s revenue growth rate plus its profit margin should equal or exceed 40%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Rule of 40 = Revenue growth rate (%) + Profit margin (%)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your company is growing at 30% year-over-year but operating at a 5% loss, your Rule of 40 score is 25\u2014signaling that growth isn&#8217;t yet offsetting the cost of running the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A company growing at 20% with a 20% margin, by contrast, hits 40 exactly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Rule of 40 is particularly useful for investors and leadership teams assessing whether a SaaS business is striking the right balance between growth and profitability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even unprofitable companies can score well if growth is strong enough, making it one of the most practical SaaS growth metrics for businesses at different stages.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Magic Number<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Magic Number measures sales efficiency, such as how effectively your business converts sales and marketing spend into new recurring revenue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Magic Number = Net new ARR \u00f7 Prior quarter S&amp;M spend<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if you added $200,000 in net new ARR this quarter and spent $400,000 on sales and marketing last quarter, your Magic Number is 0.5\u2014a signal that your acquisition spend isn&#8217;t yet converting efficiently and your strategy may need revisiting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A score above 1.0 generally indicates strong sales efficiency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A common mistake is confusing the Magic Number with the CAC-to-LTV ratio (covered above). The CAC-to-LTV ratio evaluates long-term customer profitability, whereas the Magic Number evaluates near-term sales efficiency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Burn Multiple<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Burn Multiple measures how much capital your company spends to generate each dollar of net new ARR.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s one of the most telling SaaS efficiency metrics for early-stage companies and a key indicator for investors evaluating capital efficiency in SaaS startup metrics.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Burn Multiple = Net cash burned \u00f7 Net new ARR<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Burn Multiple below 1x is considered excellent, because this means you&#8217;re generating more new ARR than you&#8217;re burning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Between 1x and 1.5x is good; above 2x starts to raise questions about sustainability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With SaaS startup metrics, keeping Burn Multiple in check is often as important as hitting growth targets, since excessive burn can limit your strategic options and shorten your company&#8217;s \u201crunway\u201d (the amount of time it can operate before needing additional funding).<\/p>\n\n\n\n<h2 id=\"h-advanced-saas-analytics-cohort-analysis-engagement-scoring-and-customer-health\" class=\"wp-block-heading\">Advanced SaaS analytics: cohort analysis, engagement scoring, and customer health<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once you have visibility across your core SaaS reporting metrics and growth indicators, the next layer is behavioral analytics. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are the signals that tell you not just what your numbers are, but why they&#8217;re moving the way they are.<\/p>\n\n\n\n<h3 id=\"h-cohort-analysis\" class=\"wp-block-heading\">Cohort analysis<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Cohort analysis tracks groups of customers based on a shared characteristic (typically their sign-up date) to understand how different segments behave over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than looking at aggregate retention or churn figures, cohort analysis lets you see whether customers acquired in a particular month, quarter, or campaign are retaining better or worse than others.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes it especially useful for measuring the impact of product changes, onboarding improvements, or pricing adjustments on long-term customer behavior.<\/p>\n\n\n\n<h3 id=\"h-customer-engagement-scoring\" class=\"wp-block-heading\">Customer engagement scoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Customer engagement scoring measures how actively customers interact with your product, tracking signals like login frequency, feature usage, and support interactions to produce a single composite score.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A declining engagement score is often an early warning sign of churn, giving your team time to intervene before a customer decides to leave.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monitoring engagement scoring alongside your core churn and retention metrics gives you the predictive visibility that reactive reporting alone can&#8217;t provide.<\/p>\n\n\n\n<h3 id=\"h-customer-health-score\" class=\"wp-block-heading\">Customer health score<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A customer health score combines multiple signals like usage frequency, Net Promoter Score (NPS) responses, support ticket volume, and billing history into a real-time indicator of whether a customer is likely to renew, expand, or churn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s one of the most actionable tools for customer success teams managing large portfolios of accounts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As your business scales, tracking SaaS metrics for data privacy (such as user activity patterns, data access frequency, and regional data usage) becomes an increasingly important part of your overall analytics picture.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Doing so will help ensure your practices stay aligned with evolving <a href=\"https:\/\/www.sage.com\/en-us\/blog\/navigating-saas-metrics-for-data-privacy-compliance\/\" target=\"_blank\" rel=\"noreferrer noopener\">SaaS metrics for data privacy<\/a> compliance requirements.<\/p>\n\n\n\n<h2 id=\"h-what-are-the-most-important-saas-marketing-and-customer-acquisition-metrics\" class=\"wp-block-heading\">What are the most important SaaS marketing and customer acquisition metrics?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most important SaaS marketing and customer acquisition metrics include customer acquisition cost (CAC), customer lifetime value (LTV), CAC payback period, lead-to-customer conversion rate, marketing-qualified leads (MQLs), sales-qualified leads (SQLs), and customer acquisition channel performance. Together, these metrics help evaluate acquisition efficiency, pipeline quality, and long-term customer value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For SaaS B2B companies, where sales cycles are often longer and deal values higher, tracking these metrics is essential for understanding which marketing and sales activities drive sustainable revenue growth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the key acquisition metrics to track:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Lead Velocity Rate (LVR)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">LVR measures the month-over-month growth in qualified leads.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike revenue metrics that reflect past performance, LVR is a leading indicator because it tells you where your revenue is heading before it shows up in MRR or ARR.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>LVR = (Qualified leads this month \u2212 Qualified leads last month) \u00f7 Qualified leads last month \u00d7 100<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A consistently positive LVR signals a healthy, growing pipeline. A flat or declining LVR is an early warning sign worth acting on before it hits your revenue metrics.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MQLs are leads that marketing has identified as likely prospects based on engagement and fit. SQLs are leads that the sales team has validated as ready for direct outreach.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking both (and the conversion rate between them) helps you identify where prospects are dropping out of your funnel and whether marketing and sales are aligned on what a good lead looks like.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For SaaS marketing metrics, the MQL-to-SQL conversion rate is one of the most practical indicators of pipeline quality and sales and marketing alignment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Average Selling Price (ASP)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">ASP measures the average revenue generated per closed deal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s a useful SaaS KPImetric for understanding how your pricing strategy is playing out in practice, and whether your sales team is closing deals at the value you&#8217;re targeting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Formula:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ASP = Total revenue from closed deals \u00f7 Number of deals closed<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking ASP over time helps you spot pricing pressure, identify which customer segments are converting at higher values, and inform decisions around packaging and discounting strategy.<\/p>\n\n\n\n<h2 id=\"h-track-essential-saas-business-metrics-with-finance-and-subscription-management-software\" class=\"wp-block-heading\">Track essential SaaS business metrics with finance and subscription management software<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most important SaaS metrics are more than just reporting tools. They are the foundation of every strategic decision your business makes, from pricing and hiring to fundraising and expansion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking them manually is time-consuming and increasingly unsustainable as your business scales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Explore <a href=\"https:\/\/www.sage.com\/en-us\/industry\/subscription-saas\/\" target=\"_blank\" rel=\"noreferrer noopener\">AI-powered finance and subscription management software<\/a> that helps you optimize operations, reduce manual effort, and support scalable growth as your business evolves.<\/p>\n\n\n\n<h2 id=\"h-saas-metrics-faqs\" class=\"wp-block-heading\">SaaS metrics FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1784296109338\"><strong class=\"schema-faq-question\">What are the most important SaaS metrics?<\/strong> <p class=\"schema-faq-answer\">The most important SaaS metrics to track are MRR, ARR, churn rate, LTV, CAC, and NRR. Together these give you visibility across revenue health, customer retention, and acquisition efficiency, which are the three pillars of sustainable SaaS growth.<br><br>Which metrics you prioritize will depend on your business growth stage. Early-stage companies typically focus on churn and CAC payback, while scaling businesses shift attention toward NRR and Rule of 40.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784296131602\"><strong class=\"schema-faq-question\">What support metrics should a SaaS company track?<\/strong> <p class=\"schema-faq-answer\">The most valuable support metrics for a SaaS company are first response time, ticket resolution time, customer satisfaction score (CSAT), and Net Promoter Score (NPS). These indicators directly reflect the quality of your customers\u2019 experience and are strong predictors of churn risk.<br><br>Tracking support metrics alongside your core retention metrics gives you a fuller picture of why customers stay or leave.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784296152914\"><strong class=\"schema-faq-question\">What is the 3-3-2-2-2 rule in SaaS?<\/strong> <p class=\"schema-faq-answer\">The 3-3-2-2-2 rule describes a revenue growth trajectory that top-performing SaaS companies have historically followed: tripling revenue in year one, tripling again in year two, then doubling for three consecutive years after that. It&#8217;s a benchmark rather than a requirement, but it&#8217;s widely used by investors to assess whether an early-stage SaaS company is growing at a pace consistent with category-leading performance.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784296186990\"><strong class=\"schema-faq-question\">What SaaS metrics matter most for startups?<\/strong> <p class=\"schema-faq-answer\">For early-stage companies, the SaaS startup metrics that matter most are CAC payback period, churn rate, and Burn Multiple. These three indicators tell you whether your acquisition strategy is efficient, whether customers are staying long enough to generate a return, and whether your rate of spending is sustainable relative to the new revenue you&#8217;re generating. Getting these right early creates the foundation for scaling confidently.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784296207530\"><strong class=\"schema-faq-question\">What&#8217;s the difference between SaaS metrics and traditional business KPIs?<\/strong> <p class=\"schema-faq-answer\">Traditional business KPIs are largely built around one-time revenue events. A sale is made, revenue is recognized, and the transaction is complete. SaaS KPI metrics are different because revenue is earned continuously through subscriptions, which means customer retention, expansion, and lifetime value become as important as acquisition.<br><br>Metrics like NRR, churn rate, and LTV have no real equivalent in traditional business reporting, which is why SaaS companies need a distinct measurement framework.<\/p> <\/div> <\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cloud-technology\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCloud Technology\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/customer-acquisition\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCustomer Acquisition &amp; Retention\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/digital-transformation\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tDigital Transformation\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/growing-a-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tGrowing a business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tSmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/staying-competitive\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tStay competitive\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/technology\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTechnology\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-27931 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers category-strategy-legal-operations tag-business-intelligence tag-performance tag-technology tag-workplace-of-the-future business_type-small-business business_type-growing-business industry-nonprofit card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-599890832-1440x810.jpg\" class=\"card-post__image\" alt=\"Discussion among volunteers\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-599890832-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-599890832-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-599890832-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T11:43:50-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-use-church-financial-reporting\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow to use church finance reports to improve transparency and decision-making\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tLearn how church finance reports help leaders track giving, manage budgets, report clearly to the congregation, and make better decisions with confidence.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-31288 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-boss-your-business tag-cash-flow tag-growing-a-business tag-small-business tag-staying-competitive business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/outstanding-checks-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg\" class=\"card-post__image\" alt=\"A woman on earophones taking notes\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T10:28:33-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are outstanding checks in bank reconciliation? How to identify, calculate, and manage them\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-37912 post type-post status-publish format-standard has-post-thumbnail hentry category-construction tag-construction tag-construction-hiring-retention tag-project-management tag-growing-a-business tag-hr-payroll tag-hr-software business_type-small-business business_type-growing-business industry-construction-and-real-estate\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/introducing-sage-hcm-for-construction\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-684x384.jpeg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-768x512.jpeg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_Construction-Commerical_0861-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-23T04:08:21-04:00\">September 23, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">5 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tIntroducing Sage HCM for Construction: Connecting workforce and financial data for smarter operations\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-29498 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-trends-insights tag-accounting-101 tag-business-intelligence tag-inventory-management tag-productivity tag-staying-competitive tag-supply-chain-management business_type-small-business business_type-growing-business industry-manufacturing industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/fifo-vs-lifo\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-16T07:20:48-04:00\">September 16, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tFIFO vs. LIFO: Differences, formulas, and examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-27542 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountants tag-accounting-101 tag-automation tag-small-business business_type-small-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-invoice-processing\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T11:19:56-04:00\">September 14, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tInvoice processing: Definition, key steps, and benefits\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>From revenue and retention to acquisition and growth, tracking essential SaaS metrics is the key to driving business growth, improving decision-making, and staying ahead of the competition. Learn which metrics matter most\u2014and how to track them effectively.<\/p>\n","protected":false},"author":1847,"featured_media":20189,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"saas metrics\",\"score\":81},{\"keyword\":\"what support metrics should a saas company track?\",\"score\":56},{\"keyword\":\"saas marketing metrics\",\"score\":61},{\"keyword\":\"saas financial metrics\",\"score\":61}]","_yoast_wpseo_keywordsynonyms":"[\"important saas metrics\",\"\",\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"48","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[48],"tags":[346,128,304,153,34,155,154],"business_type":[40,41],"lilypad":[],"context":[],"industry":[450],"persona":[100,98,96,97],"imagine_tag":[461,468,434,233,471,230],"coauthors":[592],"class_list":["post-31913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-innovation","tag-cloud-technology","tag-customer-acquisition","tag-digital-transformation","tag-growing-a-business","tag-small-business","tag-staying-competitive","tag-technology","business_type-small-business","business_type-growing-business","industry-software-saas"],"sage_meta":{"region":"en-us","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1406088800.jpg","imagine_tags":{"461":"Cloud","468":"Grow your business","434":"Large Business","233":"Medium Businesses","471":"SaaS","230":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/31913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=31913"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/31913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/20189"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=31913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=31913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=31913"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=31913"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=31913"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=31913"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=31913"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=31913"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=31913"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=31913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}