SaaS Growth & Unit Economics
2026 SaaS Financial Metrics: Churn, LTV, CAC & The Rule of 40
For recurring revenue businesses, Monthly Recurring Revenue (MRR) is only half the story. Top venture capital firms and strategic acquirers evaluate software companies based on their Net Revenue Retention (NRR), SaaS Quick Ratio, and LTV:CAC ratio.
SaaS Health Scorecard Benchmarks (2026)
| Metric | Poor / High Risk | Good / Healthy | Elite / Top Quartile |
|---|---|---|---|
| Monthly Logo Churn (B2B SMB) | > 5.0% | 2.0% - 3.5% | < 1.5% |
| Monthly Logo Churn (Enterprise) | > 2.0% | 0.8% - 1.2% | < 0.5% |
| LTV to CAC Ratio | < 2.0x | 3.0x - 4.5x | > 5.0x |
| CAC Payback Period | > 18 months | 10 - 14 months | < 8 months |
| SaaS Quick Ratio | < 2.0 | 2.5 - 4.0 | > 4.0 |
How the SaaS Quick Ratio Determines Growth Efficiency
The Quick Ratio compares your growth engine against your churn leak:
Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)
If your Quick Ratio is below 2.0, you are adding 2 dollars of revenue for every dollar leaking out—meaning your growth will inevitably plateau. Scaling past $1M ARR requires keeping your Quick Ratio above 4.0.
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