12 Most Important SaaS KPIs


The top KPIs are integral in the SaaS industry as they provide quantifiable measures of performance, enabling companies to track the success of their products and customer engagement. They help in assessing the efficacy of subscription models, measuring recurring revenue, customer acquisition costs, lifetime value, churn rate, and the growth efficiency index.

These metrics are critical for SaaS businesses, which rely on long-term customer relationships and recurring revenue streams rather than one-time sales.

This article showcases the Most Critical 12 KPIs for SaaS and Associated Benchmarks.

1. Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is a critical KPI that provides insight into a company's financial health and growth potential.

It reflects the predictable revenue generated from subscriptions or contracts, influencing cash flow and strategic planning. High ARR indicates strong customer retention and effective sales strategies, while low ARR may signal issues in customer satisfaction or market fit.

Organizations leverage ARR to track results against targets, enabling data-driven decision-making. Learn more about the Annual Recurring Revenue (ARR) KPI.

View Common Pitfalls
View Improvement Levers

We have 4 benchmarks for this KPI available in our database.

View Annual Recurring Revenue (ARR) Benchmarks

What is the standard formula?
Total Annual Value of all Recurring Subscriptions or Contracts


Related KPI Categories

2. Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is a critical KPI that quantifies the total revenue a business can expect from a single customer account throughout the relationship.

It directly influences customer acquisition strategies, retention efforts, and overall profitability. Understanding CLTV enables organizations to allocate resources effectively, enhancing marketing ROI and driving sustainable growth.

By improving CLTV, companies can foster long-term loyalty and optimize their financial health. Learn more about the Customer Lifetime Value (CLTV) KPI.

View Common Pitfalls
View Improvement Levers

We have 14 benchmarks for this KPI available in our database.

View Customer Lifetime Value (CLTV) Benchmarks

3. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a vital metric that gauges the cost of acquiring new customers, directly impacting financial health and profitability.

A high CAC can indicate inefficiencies in marketing and sales strategies, leading to reduced ROI. Conversely, a low CAC suggests effective customer engagement and cost control.

This KPI influences critical business outcomes, including revenue growth and customer lifetime value. Learn more about the Customer Acquisition Cost (CAC) KPI.

View Common Pitfalls
View Improvement Levers

We have 7 benchmarks for this KPI available in our database.

View Customer Acquisition Cost (CAC) Benchmarks

4. Churn Rate

Churn Rate is a critical KPI that reflects customer retention and satisfaction, directly influencing revenue stability and growth.

High churn rates can indicate underlying issues in product quality or customer service, which may lead to increased acquisition costs. Organizations that effectively monitor and manage churn can enhance their financial health, optimize operational efficiency, and improve ROI metrics.

By leveraging data-driven decision-making, businesses can identify trends and implement strategies to reduce churn, ultimately aligning with broader strategic goals. Learn more about the Churn Rate KPI.

View Common Pitfalls
View Improvement Levers

We have 4 benchmarks for this KPI available in our database.

View Churn Rate Benchmarks

5. Net Revenue Retention (NRR)

Net Revenue Retention (NRR) is a critical KPI that measures a company's ability to retain revenue from existing customers over time.

It directly influences financial health, operational efficiency, and overall business growth. High NRR indicates strong customer loyalty and effective upselling strategies, while low NRR may signal customer dissatisfaction or increased churn.

By tracking this metric, organizations can make data-driven decisions that enhance customer relationships and improve ROI. Learn more about the Net Revenue Retention (NRR) KPI.

View Common Pitfalls
View Improvement Levers

We have 6 benchmarks for this KPI available in our database.

View Net Revenue Retention (NRR) Benchmarks

What is the standard formula?
((Starting MRR + Expansion Revenue - Contraction Revenue - Revenue Churn) / Starting MRR) * 100


Related KPI Categories

6. Retention Rate

Retention Rate is a vital KPI that measures customer loyalty and satisfaction, directly impacting revenue stability and growth.

High retention rates often correlate with increased customer lifetime value and lower acquisition costs. Businesses that prioritize retention can achieve significant operational efficiency and strategic alignment, leading to improved financial health.

A strong retention strategy fosters a data-driven decision-making culture, enhancing overall business outcomes. Learn more about the Retention Rate KPI.

View Common Pitfalls
View Improvement Levers

We have 6 benchmarks for this KPI available in our database.

View Retention Rate Benchmarks

What is the standard formula?
(Number of Customers at End of Period X - Number of Customers Acquired during Period X) / Number of Customers at Start of Period X


Related KPI Categories

7. Average Revenue Per Account (ARPA)

Average Revenue Per Account (ARPA) serves as a critical indicator of financial health, reflecting the revenue generated per customer account.

This KPI influences strategic alignment, operational efficiency, and overall business outcomes. Higher ARPA signifies effective pricing strategies and customer retention, while lower values may indicate issues with product-market fit or customer satisfaction.

Organizations can leverage ARPA to forecast growth potential and assess the ROI metric of customer acquisition efforts. Learn more about the Average Revenue Per Account (ARPA) KPI.

View Common Pitfalls
View Improvement Levers

We have 3 benchmarks for this KPI available in our database.

View Average Revenue Per Account (ARPA) Benchmarks

What is the standard formula?
Total Revenue in Period X / Number of Accounts during Period X


Related KPI Categories

8. Gross Margin

Gross Margin is a critical financial ratio that reflects a company's operational efficiency and profitability.

It directly influences business outcomes such as pricing strategy, cost control, and overall financial health. High gross margins indicate effective cost management and pricing power, while low margins may signal inefficiencies or pricing pressures.

Companies that leverage this KPI can make data-driven decisions to improve their ROI metric and align their strategies with market demands. Learn more about the Gross Margin KPI.

View Common Pitfalls
View Improvement Levers

We have 6 benchmarks for this KPI available in our database.

View Gross Margin Benchmarks

9. Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) is a critical performance indicator that gauges customer perceptions of service quality.

High CSAT scores correlate with customer loyalty, repeat purchases, and positive word-of-mouth, directly impacting revenue growth. Organizations that prioritize CSAT can enhance operational efficiency and drive strategic alignment across departments.

By embedding CSAT into their KPI framework, executives can make data-driven decisions that improve customer experiences. Learn more about the Customer Satisfaction Score (CSAT) KPI.

View Common Pitfalls
View Improvement Levers

We have 7 benchmarks for this KPI available in our database.

View Customer Satisfaction Score (CSAT) Benchmarks

10. Lead Conversion Rate

Lead Conversion Rate is a critical KPI that measures the effectiveness of marketing and sales efforts in turning leads into paying customers.

A higher conversion rate indicates stronger alignment between marketing strategies and customer needs, leading to increased revenue and improved ROI. This metric influences customer acquisition costs and overall sales efficiency.

Tracking this KPI allows organizations to make data-driven decisions that enhance operational efficiency and drive business outcomes. Learn more about the Lead Conversion Rate KPI.

View Common Pitfalls
View Improvement Levers

We have 7 benchmarks for this KPI available in our database.

View Lead Conversion Rate Benchmarks

11. Sales Pipeline Coverage

Sales Pipeline Coverage is a critical KPI that reflects the alignment between sales forecasts and actual opportunities, influencing revenue predictability and resource allocation.

Accurate coverage ensures that organizations can effectively manage cash flow, optimize operational efficiency, and drive strategic alignment across teams. A robust pipeline coverage metric allows executives to make data-driven decisions, enhancing forecasting accuracy and improving overall financial health.

Companies with strong pipeline coverage can better track results and meet target thresholds, ultimately impacting ROI and business outcomes. Learn more about the Sales Pipeline Coverage KPI.

View Common Pitfalls
View Improvement Levers

We have 3 benchmarks for this KPI available in our database.

View Sales Pipeline Coverage Benchmarks

What is the standard formula?
Total Sales Pipeline Value / Sales Quota for Period X


Related KPI Categories

12. Customer Health Score

Customer Health Score serves as a vital leading indicator of overall customer satisfaction and engagement, influencing retention rates and revenue growth.

A high score typically correlates with strong customer loyalty, while a low score can signal potential churn risks. Companies that actively monitor this KPI can make data-driven decisions to enhance operational efficiency and improve financial health.

By aligning customer success initiatives with strategic goals, organizations can optimize their resource allocation and drive better business outcomes. Learn more about the Customer Health Score KPI.

View Common Pitfalls
View Improvement Levers

We have 2 benchmarks for this KPI available in our database.

View Customer Health Score Benchmarks


These 12 SaaS KPIs were selected to provide a comprehensive view across financial performance, customer behavior, and operational efficiency. They balance leading indicators like Lead Conversion Rate and Customer Health Score with lagging metrics such as ARR and Gross Margin. This set spans the full customer lifecycle—from acquisition and retention to revenue expansion—enabling SaaS teams to diagnose growth drivers and risks holistically.

Track Customer Acquisition Cost (CAC) alongside Customer Lifetime Value (CLTV) to assess acquisition efficiency and long-term profitability; a CLTV-to-CAC ratio below 3 signals unsustainable spend. Monitor Net Revenue Retention (NRR) with Churn Rate—divergence between these highlights whether expansion revenue offsets customer losses. Compare Average Revenue Per Account (ARPA) with Retention Rate to detect if revenue growth stems from account expansion or improved customer retention.

Prioritize implementing ARR, CAC, and Churn Rate first, as these KPIs are foundational, widely available, and reveal immediate revenue and retention dynamics. Next, layer in CLTV and NRR to deepen unit economics and account growth analysis. The full SaaS KPI set, with detailed formulas and benchmarks, is accessible in the KPI Depot database for teams seeking advanced performance management insights.

Subscribe for Full Access to KPI Depot
Unlock smarter decisions with instant access to 20,000+ KPIs and 30,000+ benchmarks. Only $199/year.


Subscribe Today for Only $199


Related Best Practices


These best practice documents below are available for individual purchase from Flevy , the largest knowledge base of business frameworks, templates, and financial models available online.


KPI Depot (formerly the Flevy KPI Library) is a comprehensive, fully searchable database of over 20,000+ KPIs and 30,000+ benchmarks. Each KPI is documented with 12 practical attributes that take you from definition to real-world application (definition, business insights, measurement approach, formula, trend analysis, diagnostics, tips, visualization ideas, risk warnings, tools & tech, integration points, and change impact).

KPI categories span every major corporate function and more than 150+ industries, giving executives, analysts, and consultants an instant, plug-and-play reference for building scorecards, dashboards, and data-driven strategies.

Our team is constantly expanding our KPI database and benchmarks database.

Got a question? Email us at support@kpidepot.com.



Each KPI in our knowledge base includes 12 attributes.

KPI Definition

A clear explanation of what the KPI measures

Potential Business Insights

The typical business insights we expect to gain through the tracking of this KPI

Measurement Approach

An outline of the approach or process followed to measure this KPI

Standard Formula

The standard formula organizations use to calculate this KPI

Trend Analysis

Insights into how the KPI tends to evolve over time and what trends could indicate positive or negative performance shifts

Diagnostic Questions

Questions to ask to better understand your current position is for the KPI and how it can improve

Actionable Tips

Practical, actionable tips for improving the KPI, which might involve operational changes, strategic shifts, or tactical actions

Visualization Suggestions

Recommended charts or graphs that best represent the trends and patterns around the KPI for more effective reporting and decision-making

Risk Warnings

Potential risks or warnings signs that could indicate underlying issues that require immediate attention

Tools & Technologies

Suggested tools, technologies, and software that can help in tracking and analyzing the KPI more effectively

Integration Points

How the KPI can be integrated with other business systems and processes for holistic strategic performance management

Change Impact

Explanation of how changes in the KPI can impact other KPIs and what kind of changes can be expected


Compare Our Plans


FAQs about KPI Depot


What does unlimited web access mean?

Our complete KPI and benchmark database is viewable online. Unlimited web access means you can browse as much of our online KPI and benchmark database as you'd like, with no limitations or restrictions (e.g. certain number of views per month). You are only restricted on the quantity of CSV downloads (see question below).

Can I download a KPI group (e.g. Competitive Benchmarking KPIs)?

Yes. You can download a complete KPI group (which includes all inclusive KPIs and respective attributes data) as a CSV file. Basic plan subscribers receive 5 downloads a month; Pro plan subscribers receive 20 downloads a month.

To gain a better sense of the KPI data included, you can download a sample CSV file here. Note the CSV download only includes KPI attribute data; and not benchmark data.

Can I can cancel at any time?

Yes. You can cancel your subscription at any time. After cancellation, your KPI Depot subscription will remain active until the end of the current billing period.

Do you offer a free trial?

We allow you to preview all of our KPI groups. If you are not a KPI Depot subscriber, you can only see the first 3 KPIs in each group.

What if I can't find a particular set of KPIs?

Please email us at support@kpidepot.com if you can't find what you need. Since our database is so vast, sometimes it may be difficult to find what you need. If we discover we don't have what you need, our research team will work on incorporating the missing KPIs. Turnaround time for these situations is typically 1 business week.

Where do you source your benchmark data?

We compile benchmarks from multiple high-quality sources and document the provenance for each metric. Our inputs include:

Each benchmark lists its source attribution and last-updated date where available. We are constantly refreshing our database with new and updated data points.

Do you provide citations or references for the original benchmark source?

Yes. Every benchmark data point includes a full citation and structured context. Where available, we display:

We cite the original publisher and link directly to the source (or an archived link) when possible. Many KPIs have multiple independent benchmarks; each appears as its own entry with its own citation.

What payment methods do you accept?

We accept a comprehensive range of payment methods, including Visa, Mastercard, American Express, Apple Pay, Google Pay, and various region-specific options, all through Stripe's secure platform. Stripe is our payment processor and is also used by Amazon, Walmart, Target, Apple, and Samsung, reflecting its reliability and widespread trust in the industry.

Are multi-user corporate plans available?

Yes. Please contact us at support@kpidepot.com with your specific needs.