Question 1

What is the definition of SaaS (Software as a Service)?

Accepted Answer

SaaS (Software as a Service) is software that is accessed online through a web browser instead of being installed on a device. It is usually offered as a subscription, with the provider handling hosting, updates, and maintenance so users can simply log in and use the software.

Question 2

What are some key SaaS metrics to track?

Accepted Answer

Key SaaS metrics include MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue), which measure recurring revenue over different time periods. MRR is better for month-to-month tracking while ARR (MRR × 12) is important for investors and company valuation.

Question 3

How is Monthly Recurring Revenue (MRR) calculated?

Accepted Answer

MRR is calculated by adding up all active customers' recurring monthly subscription payments, including upgrades, downgrades, new subscriptions, and cancellations. One-time fees and usage-based charges are excluded.

Question 4

How is MRR calculated in the Paddle ProfitWell dashboard?

Accepted Answer

In Paddle ProfitWell, MRR is calculated by taking all active recurring subscriptions and converting them to a monthly value. Annual and longer-term plans are normalized to monthly revenue. One-time payments, refunds, and usage-based charges are excluded.

Question 5

How is MRR calculated in the Stripe dashboard?

Accepted Answer

In Stripe, MRR is calculated from active recurring subscriptions normalized to a monthly value. It reflects changes from new subscriptions, upgrades, downgrades, and cancellations. One-time payments, setup fees, and usage-based charges are not included.

Question 6

Can Chartsy help with SaaS metric tracking?

Accepted Answer

Yes. Chartsy connects to your Stripe or Paddle account to automatically track MRR, ARR, churn rate, customer lifetime value (CLV), cohort analysis, and more. It visualizes trends over time and highlights growth opportunities.

Free SaaS Metrics Cheat Sheet

Common Questions

What is the definition of SaaS (Software as a Service)

What are some key SaaS metrics to track?

How is Monthly Recurring Revenue(MRR) calculated?

How is Monthly Recurring Revenue (MRR) calculated in Paddle ProfitWell dashboard?

How is Monthly Recurring Revenue (MRR) calculated in Stripe dashboard?

Can Chartsy help with key SaaS metric tracking?

Need automatic metric tracking?