The original title is: "The SaaS Metrics Every Founder Should Track (MRR, CAC, LTV, Runway)"

Short summary

A practical guide to the four SaaS metrics that actually indicate business health: MRR, CAC, LTV, and runway. Each metric includes the correct formula, common mistakes that inflate numbers, and interpretive context like net new MRR breakdown and CAC payback period. The LTV:CAC ratio is highlighted as the first number a serious investor checks.

• •MRR must be normalized monthly and broken into new, expansion, reactivation, contraction, and churn components
• •CAC must be fully loaded with all sales and marketing costs, not just ad spend
• •LTV must use gross margin, not raw revenue, to avoid fooling yourself
• •LTV:CAC ratio and CAC payback period are the key investor-grade health signals

Generated with AI, which can make mistakes.