SaaS Metrics School

What Top SaaS Performers Spend to Acquire a Dollar of ARR

Listen Later

In episode #289, Ben dives into one of his favorite SaaS metrics: Cost of ARR (Annual Recurring Revenue), also known as the SaaS CAC Ratio. This powerful go-to-market metric helps operators and investors evaluate how efficiently a company acquires recurring revenue. Ben breaks down how to calculate it, segment it, and benchmark it using the latest data from Ray Rike at Benchmarkit.ai.

What You’ll Learn:

  • What is Cost of ARR and why it matters for SaaS operators and investors
  • The formula
  • How to calculate blended, new, and expansion Cost of ARR
  • Latest benchmark data by ACV from Benchmarkit.ai
  • Why aggregate benchmarks are risky and how to segment by ACV size
  • How to use this metric to validate your bookings forecast and GTM budget
  • When to adopt this metric

    •  

    Resources Mentioned

    • Benchmark your SaaS business: Benchmarkit.ai (give-to-get model)
    • Ben’s blog, templates, and courses at TheSaaSCFO.com
    • Join the SaaS Community: https://www.thesaasacademy.com/offers/dzSx6W32
    • Stay in the loop with exclusive SaaS content: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

      •  

      ...more
      View all episodesView all episodes
      Download on the App Store
      SaaS Metrics SchoolBy Ben Murray
      • 4.6
      • 4.6
      • 4.6
      • 4.6
      • 4.6

      4.6

      11 ratings

      More shows like SaaS Metrics School

      View all
      The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch by Harry Stebbings

      The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

      534 Listeners

      The Official SaaStr Podcast: SaaS | Founders | Investors by SaaStr

      The Official SaaStr Podcast: SaaS | Founders | Investors

      172 Listeners

      WSJ What’s News by The Wall Street Journal

      WSJ What’s News

      4,354 Listeners

      a16z Podcast by Andreessen Horowitz

      a16z Podcast

      1,086 Listeners

      CFO THOUGHT LEADER by The Future of Finance is Listening

      CFO THOUGHT LEADER

      128 Listeners

      The SaaS Podcast - SaaS, Startups, Growth Hacking & Entrepreneurship by Omer Khan

      The SaaS Podcast - SaaS, Startups, Growth Hacking & Entrepreneurship

      184 Listeners

      Founders by David Senra

      Founders

      2,104 Listeners

      Equity by TechCrunch, Rebecca Bellan, Kirsten Korosec, Anthony Ha, Max Zeff, Theresa Loconsolo

      Equity

      339 Listeners

      Y Combinator Startup Podcast by Y Combinator

      Y Combinator Startup Podcast

      233 Listeners

      Wall Street Breakfast by Seeking Alpha

      Wall Street Breakfast

      1,032 Listeners

      Morning Brew Daily by Morning Brew

      Morning Brew Daily

      3,003 Listeners

      The Prof G Pod with Scott Galloway by Vox Media Podcast Network

      The Prof G Pod with Scott Galloway

      5,488 Listeners

      All-In with Chamath, Jason, Sacks Friedberg by All-In Podcast, LLC

      All-In with Chamath, Jason, Sacks Friedberg

      9,835 Listeners

      Prof G Markets by Vox Media Podcast Network

      Prof G Markets

      1,340 Listeners

      The SaaS CFO by Ben Murray

      The SaaS CFO

      4 Listeners