Formula Cheat Sheet

When investors ask for your numbers, they expect them to be calculated using standard methodologies. Here are the exact formulas Calanar uses.

Growth Metrics

Customer Acquisition Cost (CAC)

CAC = Total Sales & Marketing Spend / Number of New Customers Acquired

Lifetime Value (LTV)

\text{LTV} = \frac{\text{ARPU} \times \text{Gross Margin \%}}{\text{Revenue Churn Rate}}

SaaS Magic Number

\text{Magic Number} = \frac{(\text{Current Q Revenue} - \text{Previous Q Revenue}) \times 4}{\text{Previous Q S\&M Spend}}

Retention Metricsx

Net Revenue Retention (NRR)

\text{NRR} = \frac{(\text{Starting MRR} + \text{Expansion MRR} - \text{Downgrade MRR} - \text{Churn MRR})}{\text{Starting MRR}} \times 100

Logo Churn Rate

\text{Logo Churn} = \frac{\text{Customers Lost in Period}}{\text{Customers at Start of Period}} \times 100

Financial Health

Burn Multiplier

\text{Burn Multiplier} = \frac{\text{Net Burn}}{\text{Net New ARR}}

• Goal: Lower is better. Ideally < 2x.

Runway (Months)

\text{Runway} = \frac{\text{Total Cash Balance}}{\text{Average Net Burn (Last 3 Months)}}