Scaling Intelligence
SaaS Magic Number
The ultimate efficiency metric for B2B SaaS. It measures how much New Revenue you create for every $1 spent on Sales & Marketing.
Monthly Data
Includes Ad Spend + Sales Salaries + Tools.
Hyper Growth
Your Magic Number
1.50
Recommended Action: Scale Hard
Net New MRR
+$5,000
Monthly Growth
Cost of Revenue
$0.67
Spent to get $1 ARR
Recaport Diagnosis
You generated $60.0k in annualized new revenue for $40.0k in spend.Green Light (1.50). You are a growth machine. For every $1 you spend, you create >$1.00 in recurring revenue. This is highly attractive to VCs. Aggressively hire sales reps and increase ad spend.
How to Read the Score
- < 0.75 (Stop): Your funnel is broken. You are burning cash inefficiently. Do NOT hire more sales reps. Fix churn or conversion first.
- 0.75 - 1.0 (Caution): You are capital efficient, but not hyper-growth ready. Tread carefully.
- > 1.0 (Go): You are a growth machine. For every $1 you spend, you get >$1 in recurring revenue. Pour fuel on the fire.
The Formula
We use the annualized monthly formula for faster feedback loops:
((Current Month MRR - Previous Month MRR) * 12)
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Previous Month Sales & Marketing Spend
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Previous Month Sales & Marketing Spend