SaaS Metrics Health Check
Compute NRR, GRR, churn, CAC payback, LTV, quick ratio, and burn multiple correctly, fix flattering errors, and name the top issue.
Before & after
Same prompt, same agent — the only difference is the skill.
Here are the key SaaS metrics to review for a health check: **Growth**: MRR growth rate, new vs. expansion revenue **Retention**: Gross and net revenue retention, logo churn **Efficiency**: CAC, CAC payback period, LTV:CAC ratio **Engagement**: DAU/MAU, feature adoption **Financial**: Burn rate, runway, gross margin **Benchmarks** for early-stage SaaS: - Net revenue retention above 100% is good, above 120% is excellent - CAC payback under 12 months - LTV:CAC ratio of 3:1 or better - Monthly logo churn under 3% Comparing your numbers against these will show where to focus. What metrics do you have available?
SAAS HEALTH CHECK — run in this order. Later numbers are meaningless if the earlier ones are broken. TIER 1 — IS THE PRODUCT WORKING? Logo churn (monthly) target <2% ⚠ fix before anything else Gross revenue retention target >90% Net revenue retention target >110% If GRR is under 85%, stop the health check here. Nothing downstream matters — CAC efficiency on a leaking bucket is a more expensive leak. This is the single most common way these reviews go wrong: optimizing acquisition on top of a retention problem. TIER 2 — IS GROWTH EFFICIENT? CAC payback target <12mo LTV:CAC target >3:1 Magic number target >0.75 New vs. expansion split expansion should be ≥25% by $1M ARR Read payback and NRR together, never separately. 14-month payback with 125% NRR is healthy. 8-month payback with 95% NRR is a treadmill. TIER 3 — IS IT DURABLE? Gross margin target >75% Burn multiple target <1.5 Runway target >18mo Rule of 40 growth % + margin % TIER 4 — LEADING INDICATORS DAU/MAU (if it's a daily tool) Activation rate to first value Time-to-value These move 2–3 months before Tier 1 does — they're your early warning. HOW TO READ THE RESULT Any Tier 1 red → retention project, freeze acquisition spend Tier 1 green, 2 red → pricing or channel problem, not product Tiers 1–2 green, 3 red→ you're healthy but over-hiring All green → you can safely spend into growth Give me the numbers you have and I'll fill the gaps and flag the tier that needs work.
About this skill
SaaS dashboards are wrong in predictable ways, and the errors always make the business look healthier. This skill computes subscription metrics with correct definitions and tells you what actually needs attention.
What it does
- Builds and reconciles the MRR bridge, then computes GRR, NRR, logo churn, CAC payback, LTV:CAC, quick ratio, burn multiple, and Rule of 40
- Catches flattering errors: churn times 12, NRR with new customers, CAC without salaries, one-time fees in ARR, uncapped LTV
- Reads 3- and 12-month trends and links metrics to find the underlying issue
- Labels benchmarks as rough ranges that vary by segment
What you get
A headline naming the 1-2 issues that matter, a metrics table with trend, the MRR bridge, the calculation fixes applied, and what to check next.
Best for
SaaS founders, finance leads, and operators preparing a monthly review, board pack, or investor update.
SKILL.md preview
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name: saas-metrics-health-check
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