The SaaS Magic Number is one of the most Googled SaaS metric posts — but it’s also one of the most misunderstood. In episode #310, Ben Murray explains what the SaaS Magic Number really measures, why investors care about it, and the benchmarks you should use to evaluate your own business model.

From the formula (revenue growth vs. sales & marketing spend) to the nuances (why churn and expansion impact the metric), Ben shows SaaS operators how to avoid common pitfalls. You’ll also hear the latest benchmark data from Ray Rike at Benchmarkit.ai, giving you investor-ready context for your next fundraising or valuation conversation.

What You’ll Learn:

Why It Matters for SaaS Operators & Investors:

Resources Mentioned:

Blog Post: https://www.thesaascfo.com/calculate-saas-magic-number/

 Five-Pillar SaaS Metrics Framework: https://www.thesaasacademy.com/the-saas-metrics-foundation

🧾 Quote from Ben

“Don’t just beat up sales and marketing when the magic number is low — churn, support, and customer success all play a role in this metric.”