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SaaS Metrics Honestly
Eight chapters on MRR, churn, NRR, CAC payback, LTV and the Rule of 40, computed the way an investor’s analyst recomputes them, with every flattering shortcut named and declined in advance.
- One worked company: £40,000 of MRR and every metric derived from four movements
- The flattering bases named: revenue payback, monthly retention quoted as annual, salaries out of CAC
- Ends with the five-line metrics page a deck can defend
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Who this checklist is for
The founder whose metrics came from a template
The metrics page came from a template and nobody can say where the numbers come from. The book rebuilds every metric from the four movements in the billing system, so each one traces to the ledger.
The reader of other people’s decks
You read other companies’ decks: competitors, acquisition targets, portfolio updates. Knowing each metric’s flattering version is how you read what a deck is not saying.
The company two quarters from a raise
The raise is two quarters out and diligence will rebuild your metrics from exports. Computing them their way now means the rebuild finds nothing, which is the outcome that gets priced.
FACTS
The commonest trick is quoting monthly retention where an annual figure belongs: 98.7 per cent monthly NRR is 85.5 per cent a year, thirteen points apart, and every analyst recomputes it in one cell. The same chapter prices CAC payback honestly: 6.25 gross-margin months where the revenue basis flatters to 5.0.
85.5 per cent
what 98.7 per cent monthly NRR really is over a year
6.25 months
the honest gross-margin payback that revenue flatters to 5.0<
FACTS
LTV divides by the smallest number in the company: £7,273 at 2.2 per cent monthly churn, and it halves the moment churn doubles, so the book treats it as a direction, not a fact. The worked Rule of 40 lands at 32.1, below the bar and exactly the conversation a board should be having about what the losses are buying.