The Magic Number of SaaS – Calculating Your Target MMR

Added by trevorhatfield 8 years ago in
Growth
Product Marketing
Product-Market Fit
SaaS Metrics

42 may be “The Almighty Answer to the Meaning of Life, the Universe, and Everything”; and according to De La Soul 3 may be the “Magic Number”; but when it comes to SaaS KPIs there’s one number you need to keep at the front of your mind – 78.

78 is the magic number when it comes to SaaS, to predicting the MRR (monthly recurring revenue) you need to keep hitting each month in reach your ARR (annual recurring revenue) goal for the next year.   Simply subtract your target ARR from your figures last year and divide by 78.  It really is that simply.

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