Guides

Practical, opinionated explanations to help you interpret metrics and avoid common mistakes.

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SaaS metrics

CAC: How to calculate Customer Acquisition Cost
Learn how to define and calculate CAC, what to include in costs, and how to segment CAC for better decisions.
Updated 2026-01-05
LTV: How to estimate Lifetime Value (and when not to)
A practical LTV guide: quick models vs cohort-based LTV, unit consistency, and pitfalls with churn and gross margin.
Updated 2026-01-05
CAC Payback Period: What it means and how to improve it
Understand CAC payback: calculation, benchmarks, and levers to improve payback through pricing, margin, and retention.
Updated 2026-01-05
Churn: How to measure churn rate correctly
A guide to churn rate: customer churn vs revenue churn, measurement choices, and how to track churn by cohort.
Updated 2026-01-05
Retention rate: how to measure retention correctly
Learn retention rate definitions, how it differs from churn, and how to measure retention by cohort and segment.
Updated 2026-01-05
ARPU: how to use Average Revenue Per User effectively
A guide to ARPU: definitions, segmentation ideas, and how ARPU interacts with retention and LTV.
Updated 2026-01-05
MRR: what it means (and how to track it cleanly)
A guide to MRR: definitions, what to include/exclude, and how to decompose MRR changes over time.
Updated 2026-01-05
ARR: how to think about Annual Recurring Revenue
ARR is a useful snapshot, but it's easy to misuse. Learn what ARR is (and isn't), and how it differs from bookings and cash.
Updated 2026-01-05
LTV:CAC ratio: how to interpret the ratio (and avoid mistakes)
Learn what LTV:CAC tells you, rough benchmarks, and how churn and payback change what 'good' looks like.
Updated 2026-01-05

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