What is SaaS Company Score?
A SaaS benchmark evaluates your software business across MRR growth, churn rate, LTV:CAC ratio, and net revenue retention.
The Formula
Score = (ฮฃ Category Scores รท Number of Categories) ร 100
Worked Example
A SaaS startup: 12% MRR growth, 3.5% monthly churn, 3.2:1 LTV:CAC, 105% NRR.
- MRR growth: 12/15 target = 80/100
- Churn: 5/3.5 = 70/100 (lower is better)
- LTV:CAC: 3.2/4.0 target = 80/100
- NRR: 105/115 target = 91/100
- Overall = (80 + 70 + 80 + 91) รท 400 ร 100 = 80%
๐ The SaaS company scores 80%, solid growth and retention but churn reduction is the priority lever.
Why This Matters
Fundraising readiness
Investors benchmark SaaS companies on these exact metrics. Scores above 85% attract premium valuations.
Growth sustainability
High growth with high churn is unsustainable. Benchmarking reveals whether growth is real or a leaky bucket.
Operational focus
Benchmarks pinpoint the single metric that would most improve overall business health.
Common Mistakes
โ Tracking gross churn only
Net revenue retention includes expansion revenue. A company with 5% gross churn and 8% expansion has 103% NRR, which is healthy.
โ Comparing seed to Series B
Early-stage metrics look different. A seed company with 8% monthly growth is performing well; a Series B company needs 5%+ monthly.
โ Ignoring payback period
LTV:CAC ratio means nothing if payback takes 24 months and you have 12 months of runway.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| MRR Growth | 15%+ monthly | 8-15% monthly | Below 5% monthly |
| Monthly Churn | Below 2% | 2-5% | Above 7% |
| Net Revenue Retention | 115%+ | 100-115% | Below 90% |
Source: OpenView SaaS Benchmarks Report 2025
Benchmark data sourced from OpenView SaaS Benchmarks Report 2025.