Every SaaS metric here comes with its formula and a worked example.
These 19 guides cover the numbers a subscription business runs on, from the first website visit to the lifetime value of a customer. Each one gives a one-sentence definition, the formula, an example worked through with round numbers, the ways to improve it and the mistakes that distort it.
They start where 1Capture works: the free trial and the first payment. Then they follow the revenue through MRR, churn and retention to what a customer is worth.
Where each group of metrics sits, from first visit to lifetime value
- VisitorsVisitor-to-trial conversion rate.
- TrialsTrial-to-paid and freemium conversion rate.
- PaymentsCard declines, failed payments, recovery.
- Recurring revenueMRR, ARR, ARPU, expansion MRR.
- Customers keptChurn, retention, LTV, CAC payback.
Trial and signup metrics show how many visitors become paying customers.
Payment metrics show how much of the money you bill actually arrives.
- Failed payment rateThe share of subscription charges that do not go through.
- Card decline rateThe share of card payment attempts the card issuer turns down.
- Payment recovery rateThe share of failed payments you collect in the end.
- DunningThe retries and reminders that collect a failed payment, and how to measure them.
- Involuntary churnCustomers lost because a payment failed, not because they chose to leave.
Revenue metrics show how big the business is and how it moves each month.
- Monthly recurring revenue (MRR)The subscription revenue you can expect every month.
- Annual recurring revenue (ARR)Your recurring revenue at a yearly scale: MRR times 12.
- Average revenue per user (ARPU)MRR divided by paying customers: what an average account pays each month.
- Expansion MRRNew MRR from customers you already have, through upgrades and add-ons.
Retention metrics show how many customers and how much revenue you keep.
Unit economics show whether winning a customer pays for itself.
- Customer lifetime value (LTV)The gross margin an average customer brings in over their whole time with you.
- Customer acquisition cost (CAC)What you spend on sales and marketing to win one new customer.
- CAC payback periodHow many months of margin it takes to earn back the cost of a customer.
- LTV to CAC ratioLifetime value divided by acquisition cost: what each dollar of CAC returns.
These free calculators cover the rest of your subscription numbers.
- Trial conversion rate calculatorYour trial-to-paid rate, and what each extra point is worth in MRR.
- Churn rate calculatorCustomer churn, MRR churn and net revenue retention, by month and year.
- Customer lifetime value calculatorLTV from ARPA, margin and churn, with the LTV to CAC ratio.
- MRR and ARR calculatorNet new MRR, ending MRR and ARR, drawn as a waterfall.
- Failed payment recovery calculatorWhat failed payments cost a month and a year, and what recovery saves.
- Stripe fee calculatorThe Stripe fee on any charge, and what you keep.