Which Metrics to Track by Stage
Pre-Revenue
- • Sign-up rate & waitlist growth
- • Activation rate (first value moment)
- • DAU/MAU ratio
- • Qualitative feedback signals
$0-10K MRR
- • MRR & MRR growth rate
- • Churn rate (monthly)
- • Conversion rate
- • CAC (if spending on ads)
$10K+ MRR
- • LTV:CAC ratio
- • Net Revenue Retention
- • Burn multiple
- • Rule of 40
Revenue & Growth Metrics
Monthly Recurring Revenue (MRR)
MRR is the heartbeat of any SaaS startup. It tells you how much predictable revenue you generate each month. Track net new MRR (new + expansion - churn) to see if you're actually growing.
MRR Growth Rate
Absolute MRR doesn't tell the full story. A startup growing 20% MoM will 10x in a year. At 10% MoM, it takes over 2 years. This rate determines your trajectory more than any other number.
Annual Run Rate (ARR)
ARR gives you (and investors) a snapshot of annual revenue potential. It's the primary metric VCs use to evaluate SaaS companies at Series A and beyond.
Acquisition & Conversion Metrics
Customer Acquisition Cost (CAC)
If it costs you $500 to acquire a customer who pays $50/month, you break even in 10 months. That's acceptable. If your CAC exceeds 18 months of revenue, your unit economics are broken.
LTV:CAC Ratio
This is the single most important unit economics metric. Below 3:1, you're spending too much on acquisition. Above 5:1, you might be under-investing in growth. The sweet spot is 3:1 to 5:1.
Sign-up to Paid Conversion Rate
This tells you how effectively your onboarding and product convert free users into paying customers. If it's below benchmark, focus on activation before spending more on acquisition.
Engagement & Retention Metrics
Monthly Churn Rate
Churn is the silent startup killer. At 5% monthly churn, you lose half your customers in a year. Every 1% reduction in churn has a massive long-term impact on revenue and growth.
Net Revenue Retention (NRR)
NRR above 100% means existing customers spend more over time, even accounting for churn. This is the holy grail — your existing base grows without acquiring a single new customer.
Daily/Monthly Active Users (DAU/MAU)
This ratio measures product stickiness. A 50% ratio means half your monthly users come back every single day. High stickiness = low churn and high lifetime value.
Efficiency & Runway Metrics
Burn Rate
Your burn rate directly determines your runway. If you burn $20K/month with $300K in the bank, you have 15 months. Every efficiency gain extends your runway and your time to find product-market fit.
Burn Multiple
The burn multiple tells you how efficiently you convert cash into growth. A 1.5x burn multiple means for every $1.50 you burn, you generate $1 in new ARR. Lower is better.
Rule of 40
If you're growing at 60% but losing 30% margins, you score 30 — below the threshold. A mature startup might grow 25% with 20% margins = 45. It balances growth against sustainability.
Track the Metric That Matters Most: Visibility
Before you can track revenue, you need traffic. List on Startup List to reach 50K+ monthly visitors and start measuring what matters.
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