18 Key SaaS Metrics and KPIs You Should Track in 2025

Which numbers actually matter when it comes to scaling your business in 2025? With competition rising and customer expectations evolving, guesswork won’t cut it anymore. Tracking the right metrics is no longer optional—it’s essential for sustainable growth. In this guide, we will break down 18 of the most important SaaS metrics and KPIs that you need to monitor. Let’s get started. 

Introduction

There’s something satisfying about numbers that tell you exactly how your business is doing. But if you run a SaaS business, not just any number will do. You need the kind that helps you make faster decisions, serve your existing customers better, and stop wasting money on what’s not working. That’s where SaaS metrics come in. 

They are not just stats for the sake of looking “data-driven.” They are tools. Some help you spot churn before it happens. Others tell you how much value you are getting from your marketing spend. A few make you rethink your pricing, product, or even your entire business model. 

If you are relying only on revenue and downloads to judge success, you are leaving too much on the table. They show you patterns, risks, and opportunities you might otherwise miss. In this guide, we will break down 18 of the most important SaaS metrics and KPIs you should track in 2025. Not all of them will apply to every company. But every metric on this list serves a purpose- to help you grow smarter, faster, and more sustainably. 

So, whether you are running a bootstrapped startup or scaling up with funding, let’s talk numbers that actually matter. 

What are SaaS Marketing Metrics?

Let’s keep it simple. SaaS marketing metrics are performance indicators that show how well your marketing efforts are working in a subscription-based business model. In other words: Are your campaigns pulling in the right leads? Are those leads turning into paying customers? And once you have acquired them, are you keeping them long enough to recover the cost of acquisition? 

These metrics give you visibility into the health of your customer pipeline. They also show you how efficiently you are converting attention into revenue. But they do more than track performance. They help you understand user behavior, see which channels drive growth, predict trends, and sometimes even stop revenue leaks before they become a flood. 

Think of them as a GPS for your SaaS business. You still make the turns, but at least you know where you are headed. Here’s a quick breakdown of the kind of questions they help you answer: 

• How much are we spending to get/acquire a new customer? 
• How long does that customer stick around? 
• Are we growing month-over-month or year-over-year? 
• Are our existing customers happy or halfway out the door? 

Each of these questions connects to a specific metric. And knowing which ones to focus on helps you make better, faster calls on what to scale, fix, or kill. 

It’s easy to get lost in dashboards. However, the best SaaS marketing services focus on tracking the metrics that actually move the needle. And that’s what we will cover next. 

Why are SaaS Metrics Important?

A lot of SaaS business marketers often wonder about the importance of SaaS metrics. Well, to put it simply, assumptions don’t scale; metrics do. In the SaaS space, you are not selling one-time products; you are selling recurring value. That means retention matters more than quick wins. 

Your revenue depends on keeping customers happy over the long haul, and every touchpoint, from marketing to support, impacts the same. 

SaaS metrics give you a real-time pulse on all of it. You don’t have to guess if your customer acquisition strategy is working. You will see it in the drop (or spike) in your lead-to-customer conversion rate. You will know if churn is creeping up. You will spot which segments bring high lifetime value and which don’t. Think of them as early warning signs and growth accelerators rolled into one. They show you: 

• What’s profitable
• What’s leaking money 
• Which customer segments are the most loyal
• Where your marketing efforts are underperforming 

Let’s say your customer acquisition cost is rising, but your average revenue per user is flat. That tells you it’s time to revisit your pricing or offer. Or maybe your customer retention rate is solid, but your revenue growth is stalling. That could mean you need to upsell or expand. 

Tracking these metrics also keeps your team aligned. When everyone’s looking at the same numbers, it’s easier to stay focused on what actually drives business impact. And if you are working with a SaaS SEO services partner or a content marketing agency, these KPIs help you measure ROI clearly. No hand-waving. Just numbers. 

Bottom line: Metrics help you make decisions based on facts, not gut instincts. And in a business model built on precision, that’s everything. 

18 SaaS Metrics and KPIs You Should Track

By now, you know why tracking metrics is essential. But here’s the thing: not all metrics deserve equal attention. Some look good in a deck, but don’t tell you much. Others are quietly bleeding your business dry without you noticing. That’s why we have filtered the noise and compiled 18 key SaaS metrics that actually matter in 2025. 

These are not vanity numbers. They help you measure profitability, retention, customer success, and marketing efficiency—all in one place. You will notice a few themes as we walk through them: 

• Metrics that track money (like monthly recurring revenue and customer lifetime value)
• Metrics that measure efficiency (like CAC and the LTV:CAC ratio) 
• Metrics that highlight user behavior (like churn rate and active users) 
• Metrics that give you a sense of customer happiness (like CSAT and NPS)

The goal isn’t to track all 18 blindly. It is to understand what each one tells you and use the right mix depending on your business’s stage. Early-stage startups may focus more on acquisition and product-market fit, while mature SaaS companies often prioritize retention, expansion, and efficiency. 

Wherever you are, these critical SaaS marketing metrics can help you spot patterns, validate strategies, and course-correct faster. We will break each one down, starting with the lifeblood of every business: Monthly Recurring Revenue (MRR). 

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the heartbeat of any SaaS business. It tells you how much predictable income you can expect every month from active subscriptions. You are not chasing one-time sales; you are building steading and recurring value. To calculate it, multiple your total number of paying customers by the average monthly revenue per customer. 

MRR gives you a quick pulse check on how your business is doing. Did you lose subscribers this month? Did an upsell campaign work? Are new acquisitions contributing significantly? It’s all right there. You can break MRR down further into new MRR, expansion MRR, and churned MRR for better insights. 

This metric helps in planning, from hiring to marketing budgets. If your MRR isn’t growing steadily, your pricing, retention, or acquisition funnel is off. 

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the yearly version of MRR. It’s the total revenue you expect to bring in over 12 months from all active subscriptions. While MRR is ideal for short-term forecasting, ARR gives you the big picture. SaaS businesses with annual contracts typically rely on ARR for growth projections, investor reports, and long-term planning.

The formula is simple: ARR = MRR x 12. But don’t let the simplicity fool you — this metric can reveal deep insights.

ARR is especially useful for tracking growth momentum. Are you onboarding enough high-value clients? Are renewals happening as expected? Are you losing deals before they reach renewal?

Investors love ARR because it signals stability. High ARR with strong retention often means lower risk. Just don’t confuse ARR with bookings or billings. ARR only includes recurring revenue. One-time fees or setup costs? Those don’t count.

Revenue Growth Rate

Revenue Growth Rate tells you how fast your SaaS business is growing over time. It tracks the percentage increase (or decrease) in your revenue compared to a previous period — monthly, quarterly, or yearly.

The formula:
(Current period revenue – Previous period revenue) / Previous period revenue x 100

Simple math, powerful insights. This metric gives you a clear answer to a tough question: Are we scaling or just surviving? A high growth rate often signals product-market fit and effective marketing. Flat or negative growth may mean churn, pricing, or acquisition issues.

But context matters. Fast growth with poor customer retention or high acquisition costs? Not sustainable. You need quality growth, driven by long-lasting customer relationships, not just aggressive ad spend. It’s also smart to track growth alongside average revenue and net revenue retention. That’ll tell you if the growth is coming from new users, upsells, or both.

Gross Margin

Gross Margin shows how efficiently your SaaS business turns revenue into profit, after accounting for the direct costs of delivering your service.

Here’s the formula:
(Total revenue – Cost of Goods Sold) / Total revenue x 100

In SaaS, your costs of goods sold (COGS) often include server costs, third-party APIs, customer support, and onboarding. Not marketing. Not office rent. Just the core delivery costs. Why does this matter? Because a healthy gross margin — ideally 75% or higher — means your business model is scalable.

Low gross margin? You may be overspending on infrastructure or offering too much hand-holding for too little return. This metric is especially useful when assessing long-term profitability. It shows how much money you have left to invest in growth: sales, product, and customer success.

Gross margin also ties directly into customer lifetime value. Higher margin = more profit per customer. 

Gross Revenue Retention

Gross Revenue Retention (GRR) tells you how much revenue you keep from existing customers, without counting upgrades or expansion. Think of it as your “bare minimum” retention rate. It’s the foundation. If this number drops, no upsell or acquisition strategy can save you.

Formula:
(Recurring revenue from existing customers at the start of the period – Churned revenue) / Starting revenue x 100

GRR focuses on loss. It shows what you’re leaking, not what you’re gaining. This metric is especially important for mature SaaS businesses. If you’re losing too much revenue from existing accounts, something’s broken in your retention process.

High GRR (ideally 90 %+) means your core product is solid and your customer success team is doing its job. Low GRR? Time to dig into customer churn rate, support gaps, and onboarding issues. Remember: keeping revenue is often cheaper than acquiring it. Gross revenue retention keeps you honest about that.

Net Revenue Retention (NRR)

Net Revenue Retention (NRR) builds on GRR by including expansion revenue — upsells, cross-sells, and upgrades. It shows how much revenue you keep and grow from your existing customers.

Here’s the formula:
(Starting revenue + Expansion revenue – Churned revenue) / Starting revenue x 100

If your NRR is over 100%, you’re growing from within. That’s the holy grail for SaaS. It means your existing customers are getting more value, spending more over time, and sticking around. Companies with high NRR don’t have to rely on aggressive customer acquisition. Their product sells itself — again and again.

NRR reflects customer satisfaction, product-market fit, and success strategy. It’s also a favorite with investors. A business with 120%+ NRR is usually a safer bet than one with fast acquisition but low retention. It’s worth tracking both GRR and NRR. GRR shows where you’re leaking; NRR shows where you’re compounding. When your existing customers fund your growth, that’s when your SaaS model truly clicks.

Churn Rate

Churn Rate tells you how many customers are saying “no thanks” each month. It’s the percentage of users who cancel or don’t renew.

Formula:
(Number of customers lost during the period / Total customers at the start of the period) x 100

Every SaaS business has churn. But high churn? That’s a problem.

Customer churn cuts into your monthly recurring revenue, increases your acquisition pressure, and usually signals bigger issues: poor onboarding, unclear value, or a bad product fit. You can’t fix what you don’t track. Churn rate helps you catch issues early. If a pricing update or UI change spikes your churn, you’ll see it here.

There are different flavors too — voluntary vs. involuntary churn. Understanding both helps you build better retention systems. And here’s the real kicker: churn is a compounding metric. Every percentage point hurts more as you scale. Low churn means your customers are happy, loyal, and see your software as essential. That’s the dream.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) measures how much you spend to get a paying customer. It includes everything — ads, salaries, tools, content — divided by the number of new customers acquired in that time.

Formula:
Total marketing + sales spend / Number of customers acquired

Knowing your CAC helps you set realistic budgets. If it costs $500 to acquire a user, but your customer lifetime value is only $400 — you’re in trouble. This metric becomes even more powerful when paired with LTV:CAC ratio. If you’re not getting at least 3x return, your acquisition strategy needs a rethink.

CAC also gives clarity when testing channels. Are Google Ads more efficient than LinkedIn? Is your blog driving lower-cost conversions? CAC helps you find out. Just watch out for vanity leads — not all signups turn into paying users. That’s where conversion rate comes in. High CAC is fine — if the payoff justifies it. But unchecked CAC growth? That’s a silent killer.

Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) estimates how much revenue a customer brings in over the entire relationship. It’s a core metric for profitability.

Formula:
Average Revenue Per User (ARPU) x Average Customer Lifespan

CLTV tells you how much each customer is worth. And once you know that, you can make smarter choices about acquisition, retention, and pricing.

It’s especially helpful when budgeting for CAC. If your lifetime value is $1500 and CAC is $400 — you’re in a strong spot. Low CLTV often hints at churn, poor onboarding, or weak customer success. High CLTV usually means customers are finding long-term value in your product.

SaaS businesses should track this closely. It’s your north star for sustainable growth. The longer the customer stays, the more value they bring — not just in revenue, but in referrals, feedback, and upsells. And remember: improving CLTV doesn’t always mean charging more. Sometimes it just means helping customers stick around longer.

LTV:CAC Ratio

The LTV:CAC ratio compares how much you earn from a customer over their lifetime (LTV) against how much it costs to acquire them (CAC). This tells you if your customer acquisition strategy is financially sustainable. A ratio of 3:1 is considered healthy. It means you are getting $3 back for every $1 spent to bring someone in. Anything below 1:1? You are losing money. 

If you are above 5:1, it might mean you are being too conservative, possibly missing out on growth opportunities. The ratio helps align marketing and finance. It shows whether your SaaS business is set up for profitable scaling or just bleeding cash. 

Tweak either side of the equation—reduce CAC or increase customer lifetime value—and your ratio improves. For early-stage SaaS companies, this metric often becomes the guiding light for all growth decisions. Want a better LTV:CAC ratio? Invest in your customer retention efforts and take a closer look at your SaaS marketing services.

Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU) tells you how much each customer contributes to your revenue on average. It’s a straightforward way to measure monetization efficiency.

To calculate:
ARPU = Total Revenue / Total Number of Active Users

ARPU also helps segment customers and plan features. Are your highest-paying users engaging with premium tools? If not, that’s a missed opportunity. SaaS SEO services and content marketing efforts should be aligned with the segments that drive the best ARPU. It’s not just about more customers—sometimes, it’s about better customers. That’s where average revenue shows its strength.

Customer Retention Rate

Customer Retention Rate shows what percentage of customers stay with your product over a period. High retention means you’re delivering ongoing value.

Formula:
[(Customers at end of period – New customers) / Customers at start of period] x 100

Retention rate also influences other metrics, like churn, LTV, and even revenue churn. Better retention usually results in more sustainable revenue growth. Focusing on existing customers instead of always chasing new ones can be smarter and more profitable.

Retention can be improved through onboarding, better product education, and strategic communication. It’s no surprise that critical SaaS marketing metrics list includes this one. It is often discussed across top SaaS content marketing services, including Wytlabs.

Lead-to-Customer Conversion Rate

This measures how many of your leads eventually become paying customers. It’s a core performance indicator for your sales funnel and marketing efforts.

Formula:
(Number of paying customers / Number of leads) x 100

If you’re driving thousands of leads through SaaS link-building services or SEO campaigns, but converting only a handful. A low rate can mean weak lead quality, misaligned messaging, or a poor sales process. High rates suggest strong alignment between marketing, product, and sales.

This KPI helps refine your customer acquisition and nurture strategies. Are your CTAs too broad? Is your free trial effective? Are sales reps following up fast enough? Use this metric to identify bottlenecks. Optimize them, and watch your CAC shrink while your customer acquisition improves.

Active Users (DAU, WAU, MAU)

Active Users track product engagement. Daily Active Users (DAU), Weekly Active Users (WAU), and Monthly Active Users (MAU) give you a pulse on how often users return and interact with your software.

The DAU/MAU ratio is often used to measure “stickiness.” A ratio of 20%+ means users come back frequently, which often predicts better customer retention and customer lifetime value. These aren’t vanity metrics. They can flag potential churn, highlight product-market fit, and guide your product roadmap.

If active user numbers are low, your onboarding or in-app experience might need fixing. Track DAU alongside user engagement metrics for a full picture. Which features do users return for? Which touchpoints boost retention? For SaaS marketing teams, active users can even inform content ideas and email campaigns.

User Engagement

User Engagement measures how much time users spend with your product and how often they interact with core features. It’s a deeper view into behavior, beyond login frequency. Metrics may include time on app, feature usage, session length, or specific actions like document uploads or team invites.

High engagement often correlates with low customer churn rate measures. It means users aren’t just signed up — they’re plugged in. Tracking engagement helps improve user flows, onboarding, and support resources. You’ll know where users are getting stuck or losing interest.

Strong engagement also boosts upsell potential and reduces revenue churn. Saas businesses investing in Wytlabs’ SaaS content marketing services often use engagement insights to build helpful resources that guide users toward value faster.

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) is a simple, real-time measure of how users feel about a specific interaction. After a support call, onboarding session, or product update — just ask, “How satisfied are you?”

Scored from 1 to 5 (or 1 to 10), it gives a direct signal of service quality. While it doesn’t tell the full story like Net Promoter Score (NPS), it’s useful for catching issues early.

If your CSAT is slipping, it’s time to talk to your customer success team. Something might be broken — a buggy update, slow support, or confusing UX. CSAT helps improve the day-to-day experience. And happy users tend to stick around longer, spend more, and refer others. It’s simple. It’s actionable. And it’s one of the first customer satisfaction metrics every SaaS business should be using.

Net Promoter Score (NPS)

Net Promoter Score (NPS) asks one key question: “How likely are you to recommend us to a friend or colleague?”

Users answer on a scale from 0 to 10. Scores of 9–10 are Promoters. Scores of 0–6 are Detractors. The difference between them is your NPS.

Use NPS to segment outreach. Turn promoters into case studies. Rescue detractors with personalized support. When paired with qualitative feedback, NPS becomes a goldmine for product and marketing teams. Want to build a product people rave about? Watch your Net Promoter Score like a hawk.

Return on Investment (ROI)

ROI measures the return you get from investments in tools, campaigns, or strategies. In SaaS, it’s often used to assess the efficiency of marketing, product development, or customer success efforts.

Formula:
(Gain from Investment – Cost of Investment) / Cost of Investment x 100

A strong ROI means your dollars are working hard. A weak ROI signals waste and potential budget reallocation. Use ROI to compare marketing channels. Did your SaaS SEO services deliver better leads than paid ads? Which campaigns actually moved the needle?

It also applies to tools. Did switching CRMs improve close rates? Is your customer onboarding software reducing churn? Ultimately, ROI isn’t just about money. It’s about impact. Time, tools, content, people — what’s driving value? Keep your eyes on this metric to scale wisely, not blindly.

Conclusion

SaaS growth isn’t a guessing game. It’s a numbers game, and your metrics are the scoreboard. Tracking the right SaaS metrics helps you beyond vanity numbers and into actionable insights. Need help in making sense of your numbers? At Wytlabs, we help SaaS companies like yours turn metrics into momentum. Ready to grow? Let the numbers lead the way.