What’s inside the SaaS metrics template
| Metric | Default definition |
|---|---|
| ARR | Monthly-normalized recurring subscription revenue × 12, excluding one-time and services fees |
| MRR | Sum of monthly-normalized amounts of active subscriptions |
| Net revenue retention | (Starting ARR + expansion − contraction − churn) ÷ starting ARR, trailing 12 months |
| Gross revenue retention | (Starting ARR − contraction − churn) ÷ starting ARR |
| Gross margin | (Revenue − cost of revenue) ÷ revenue |
| CAC payback | Prior-quarter S&M cost ÷ (new MRR added × gross margin), in months |
| Burn multiple | Net burn ÷ net new ARR, quarterly and trailing four quarters |
| Net burn | Operating cash out − cash in, excluding financing |
| Runway | Cash ÷ average net burn of the last three months |
| Rule of 40 | ARR growth rate + EBITDA or free-cash-flow margin |
The defaults are deliberately conservative. MRR follows the convention Stripe uses, summing the monthly-normalized value of active subscriptions so a $1,200 annual plan counts as $100 a month1Source 1 · Stripe SupportCalculating Monthly Recurring Revenue (MRR) in Billingsupport.stripe.com. ARR excludes one-time and professional-services fees, as a16z recommends2Source 2 · Andreessen Horowitz (a16z), 201516 Startup Metricsa16z.com. Burn multiple follows David Sacks’s original definition, net burn divided by net new ARR3Source 3 · David Sacks (Craft Ventures), 2020The Burn Multiplesacks.substack.com. Bessemer has published reference points for CAC payback and net retention by ARR band, which you can add as target lines4Source 4 · Bessemer Venture Partners, 2021Scaling to $100 Millionbvp.com.
Who it’s for
- Finance leads who want one place where SaaS metrics are defined, instead of three spreadsheets.
- Founders preparing board meetings or a fundraise, where every number will be checked.
- RevOps and data teams who need metrics that dashboards, AI answers and exports all agree on.
Data it needs
How to set it up
- Step 1:
Connect the four sources
Add Stripe, QuickBooks, HubSpot and Postgres in Connectors. Postgres can stay behind your firewall with Kimo Bridge.
- Step 2:
Map accounts and customers
Tell Kimo which ledger accounts are cost of revenue and sales and marketing, and how billing customers match CRM companies.
- Step 3:
Review definitions
Walk through each measure in Models and settle edge cases such as trials, discounts and usage fees. The SaaS metrics definitions guide lists the decisions to make.
- Step 4:
Publish
Publish the model. The metrics appear in the revenue dashboard, in Ask Kimo, and in the board deck and investor update templates.
select
date_trunc('month', changed_at) as month,
sum(case when movement = 'new' then arr_delta else 0 end) as new_arr,
sum(case when movement = 'expansion' then arr_delta else 0 end) as expansion_arr,
sum(case when movement = 'contraction' then arr_delta else 0 end) as contraction_arr,
sum(case when movement = 'churn' then arr_delta else 0 end) as churned_arr,
sum(arr_delta) as net_new_arr
from arr_movements
group by 1
order by 1;For context on how each number is read by investors, see The metrics every Series A board will ask about and Burn multiple, explained.
Frequently asked questions
Can I change how ARR is calculated?
What if I bill through Paddle or invoice manually?
Does it include benchmarks?
Sources
4 references- Calculating Monthly Recurring Revenue (MRR) in Billing (opens in a new tab)Stripe Supportsupport.stripe.com
MRR as the sum of monthly-normalized amounts of active subscriptions.
- 16 Startup Metrics (opens in a new tab)Andreessen Horowitz (a16z)2015a16z.com
ARR excludes one-time and professional-services fees.
- The Burn Multiple (opens in a new tab)David Sacks (Craft Ventures)2020sacks.substack.com
Burn multiple = net burn ÷ net new ARR.
- Scaling to $100 Million (opens in a new tab)Bessemer Venture Partners2021bvp.com
CAC payback and net retention benchmarks by ARR band.
External sources were accessed at the time of writing. Kimo product details, customers and figures in examples are illustrative unless a source is cited.


