ARR, NRR, CAC, LTV, burn, the Rule of 40: every metric founders and investors live by.
SaaS metrics are ratios of a few ledger lines, so they only mean something once the definitions are pinned down. These guides cover how bookings, billings and revenue relate, how to read a SaaS P&L, and what burn says about efficiency. The metric guides go deeper on each ratio.
Start with the revenue definitions, then the P&L, then efficiency.
Metric guides on this topic: SaaS metrics: the 15 numbers that matter, how they connect and how investors weigh them · NRR (net revenue retention): formula, calculator and 2026 benchmarks · Rule of 40: calculator, formula and 2026 SaaS benchmarks · CAC payback period: formula, calculator and 2026 benchmarks · LTV:CAC ratio: formula, calculator and 2026 benchmarks · ARR vs MRR: the difference, the conversion and which to report · RPO (remaining performance obligations): definition, calculator and examples
A SaaS P&L has rules down to EBITDA and none after it, so read the add-backs first: one Blackbaud quarter scores 41 on the Rule of 40, or 24 on GAAP margin.
Bookings vs billings vs revenue: signed, invoiced, earned. Only revenue has a rulebook; count bookings as ASC 606 counts RPO, by the noncancellable term.
Burn rate is the cash a company loses each month: gross burn counts payments, net burn subtracts collections. The burn multiple prices the ARR it buys.
