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Run npx skillmds@latest add nandanosql/saas-economics-efficiency-metrics in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

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Is Saas Economics Efficiency Metrics free to use?

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Who published Saas Economics Efficiency Metrics?

nandanosql (@nandanosql) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Saas Economics Efficiency Metrics by nandanosql

Name: Saas Economics Efficiency Metrics
Author: nandanosql

File contents

Purpose

Calculate and interpret critical SaaS economics — CAC, LTV, LTV/CAC, payback period, NRR, and magic number — to assess whether the business can grow sustainably and where to invest.

Application

Key Metrics Template

# SaaS Economics: [Product Name]
**Period:** [Quarter/Year]

## Unit Economics

| Metric | Value | Benchmark | Health |
|--------|-------|-----------|--------|
| **CAC** (Customer Acquisition Cost) | $[#] | Industry: $[#] | 🟢/🟡/🔴 |
| **LTV** (Lifetime Value) | $[#] | ≥3x CAC | 🟢/🟡/🔴 |
| **LTV:CAC Ratio** | [#]:1 | >3:1 healthy | 🟢/🟡/🔴 |
| **Payback Period** | [#] months | <12 months | 🟢/🟡/🔴 |
| **Gross Margin** | [%] | >70% SaaS | 🟢/🟡/🔴 |
| **NRR** (Net Revenue Retention) | [%] | >110% | 🟢/🟡/🔴 |
| **GRR** (Gross Revenue Retention) | [%] | >85% | 🟢/🟡/🔴 |
| **Magic Number** | [#] | >0.75 invest more | 🟢/🟡/🔴 |
| **Rule of 40** | [%] | >40% | 🟢/🟡/🔴 |

## Formulas
- **CAC** = Total Sales & Marketing Spend / New Customers Acquired
- **LTV** = ARPU × Gross Margin × (1 / Churn Rate)
- **LTV:CAC** = LTV / CAC
- **Payback Period** = CAC / (ARPU × Gross Margin)
- **NRR** = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR
- **Magic Number** = Net New ARR / Prior Quarter S&M Spend
- **Rule of 40** = Revenue Growth Rate + Profit Margin

## Interpretation
- [What's healthy and why]
- [What needs improvement]
- [Investment recommendation based on magic number]

Quality Rubric

Dimension	0	1	2
Metrics	1-2 metrics	4-5 metrics	Full dashboard (8+ metrics)
Data Quality	Estimated	Partially calculated	Fully calculated from real data
Benchmarking	No comparison	Industry benchmark	Industry + trend over time
Interpretation	Numbers only	What they mean	What to do about them

References

Related Skills

skills/strategy/business-model-canvas/SKILL.md — Revenue model context
skills/growth/growth-model/SKILL.md — Growth projections
skills/launch/pricing-packaging-advisor/SKILL.md — Pricing affects all metrics

External Frameworks

David Skok (Matrix Partners), SaaS metrics
Bessemer Cloud Index — SaaS benchmarks

Skill type: Component Domain: Analytics & Metrics

---name: saas-economics-efficiency-metricsdescription: Calculate and interpret SaaS unit economics — CAC, LTV, LTV/CAC ratio, payback period, net revenue retention, and magic number — to assess business health and growth efficiency.---## PurposeCalculate and interpret critical SaaS economics — **CAC, LTV, LTV/CAC, payback period, NRR, and magic number** — to assess whether the business can grow sustainably and where to invest.---## Application### Key Metrics Template```markdown# SaaS Economics: [Product Name]**Period:** [Quarter/Year]## Unit Economics| Metric | Value | Benchmark | Health ||--------|-------|-----------|--------|| **CAC** (Customer Acquisition Cost) | $[#] | Industry: $[#] | 🟢/🟡/🔴 || **LTV** (Lifetime Value) | $[#] | ≥3x CAC | 🟢/🟡/🔴 || **LTV:CAC Ratio** | [#]:1 | >3:1 healthy | 🟢/🟡/🔴 || **Payback Period** | [#] months | <12 months | 🟢/🟡/🔴 || **Gross Margin** | [%] | >70% SaaS | 🟢/🟡/🔴 || **NRR** (Net Revenue Retention) | [%] | >110% | 🟢/🟡/🔴 || **GRR** (Gross Revenue Retention) | [%] | >85% | 🟢/🟡/🔴 || **Magic Number** | [#] | >0.75 invest more | 🟢/🟡/🔴 || **Rule of 40** | [%] | >40% | 🟢/🟡/🔴 |## Formulas- **CAC** = Total Sales & Marketing Spend / New Customers Acquired- **LTV** = ARPU × Gross Margin × (1 / Churn Rate)- **LTV:CAC** = LTV / CAC- **Payback Period** = CAC / (ARPU × Gross Margin)- **NRR** = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR- **Magic Number** = Net New ARR / Prior Quarter S&M Spend- **Rule of 40** = Revenue Growth Rate + Profit Margin## Interpretation- [What's healthy and why]- [What needs improvement]- [Investment recommendation based on magic number]```---## Quality Rubric| Dimension | 0 | 1 | 2 ||-----------|---|---|---|| **Metrics** | 1-2 metrics | 4-5 metrics | Full dashboard (8+ metrics) || **Data Quality** | Estimated | Partially calculated | Fully calculated from real data || **Benchmarking** | No comparison | Industry benchmark | Industry + trend over time || **Interpretation** | Numbers only | What they mean | What to do about them |---## References### Related Skills- `skills/strategy/business-model-canvas/SKILL.md` — Revenue model context- `skills/growth/growth-model/SKILL.md` — Growth projections- `skills/launch/pricing-packaging-advisor/SKILL.md` — Pricing affects all metrics### External Frameworks- David Skok (Matrix Partners), SaaS metrics- Bessemer Cloud Index — SaaS benchmarks---**Skill type:** Component**Domain:** Analytics & Metrics

Frequently asked questions

Saas Economics Efficiency Metrics