Business Metrics Handbook
Comprehensive metric definitions for SaaS, e-commerce, marketplace, and subscription businesses with calculation formulas and benchmarks.
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Business Metrics Handbook
A comprehensive reference for business metrics across SaaS, e-commerce, marketplace, subscription, finance, and growth models. Every metric includes a precise definition, calculation formula, worked example, industry benchmarks, common pitfalls, and related metrics.
What's Inside
By Business Model
| Folder | Metrics Covered |
|---|---|
saas/ | MRR, ARR, Net Revenue Retention, Logo Retention, Quick Ratio, Magic Number, Burn Multiple |
ecommerce/ | AOV, Conversion Rate, Cart Abandonment, Revenue Per Visitor, Return Rate |
marketplace/ | GMV, Take Rate, Liquidity, Buyer/Seller Ratio, Supply Utilization |
subscription/ | Churn Rate, LTV, LTV:CAC Ratio, Payback Period, Expansion Revenue |
finance/ | Gross Margin, Rule of 40, Burn Rate, Runway, Unit Economics |
growth/ | CAC, Activation Rate, Viral Coefficient, Cohort Retention, North Star Metrics |
Special Files
INDEX.md— Quick-reference index of all metrics with one-line definitionsmetric-trees.md— How metrics connect to each other (decomposition trees)north-star-guide.md— Choosing and using North Star metrics
How to Use This Handbook
Looking up a specific metric? Check INDEX.md for the one-liner and a pointer to the full entry.
Understanding how metrics relate? Read metric-trees.md to see decomposition trees and dependencies.
Setting targets for your business? Each metric file includes industry benchmarks by stage (seed, Series A, growth, mature).
Debugging a metric that moved? Each file explains what drives the metric up or down, and which related metrics to check.
Metric Entry Format
Every metric follows this structure:
1. Definition — Precise, unambiguous definition
2. Formula — Mathematical formula with variable definitions
3. Worked Example — Specific numbers showing the calculation
4. Benchmarks — By industry and company stage
5. Common Pitfalls — How people get this metric wrong
6. Related Metrics — What else to look at
Who This Is For
- Data analysts who need precise metric definitions (not Wikipedia-level)
- Product managers setting KPIs for their team
- Founders and operators benchmarking their business
- Finance teams building investor reporting
License
MIT License — see LICENSE file.
Part of [Data Analyst Toolkit](https://datanest-stores.pages.dev/data-analyst/)
📄 Content Sample INDEX.md
Metrics Index
Quick-reference for all metrics in this handbook. Click through to the full entry for formulas, worked examples, and benchmarks.
SaaS Metrics
| Metric | One-Line Definition | File |
|---|---|---|
| MRR | Total predictable monthly revenue from active subscriptions | saas/mrr-arr.md |
| ARR | MRR × 12; annual recurring revenue run rate | saas/mrr-arr.md |
| Net Revenue Retention (NRR) | % of revenue retained + expanded from existing customers over a period | saas/net-revenue-retention.md |
| Quick Ratio | (New + Expansion MRR) / (Churned + Contraction MRR); growth efficiency | saas/quick-ratio-magic-number.md |
| Magic Number | Net New ARR / Prior Period S&M Spend; go-to-market efficiency | saas/quick-ratio-magic-number.md |
E-Commerce Metrics
| Metric | One-Line Definition | File |
|---|---|---|
| AOV | Average revenue per completed order | ecommerce/aov-conversion-rate.md |
| Conversion Rate | % of site visitors who complete a purchase | ecommerce/aov-conversion-rate.md |
| Cart Abandonment Rate | % of shopping carts created but not purchased | ecommerce/cart-abandonment-rpv.md |
| Revenue Per Visitor (RPV) | Revenue / Visitors; combines CR and AOV into single metric | ecommerce/cart-abandonment-rpv.md |
Marketplace Metrics
| Metric | One-Line Definition | File |
|---|---|---|
| GMV | Total transaction value facilitated by the platform | marketplace/gmv-take-rate.md |
| Take Rate | Marketplace revenue as % of GMV | marketplace/gmv-take-rate.md |
| Liquidity | % of listings that result in successful transactions | marketplace/liquidity-supply-utilization.md |
| Supply Utilization | % of available supply capacity being consumed | marketplace/liquidity-supply-utilization.md |
Subscription Metrics
| Metric | One-Line Definition | File |
|---|---|---|
| Churn Rate | % of customers (or revenue) lost per period | subscription/churn-rate.md |
| LTV | Total revenue a customer generates over their entire relationship | subscription/ltv-ltv-cac.md |
| LTV:CAC Ratio | Lifetime value divided by acquisition cost; unit economics check | subscription/ltv-ltv-cac.md |
| CAC Payback Period | Months to recover acquisition cost from customer payments | subscription/payback-period-expansion.md |
| Expansion Revenue | Additional MRR from existing customers (upgrades, add-ons) | subscription/payback-period-expansion.md |
Finance Metrics
| Metric | One-Line Definition | File |
|---|---|---|
| Gross Margin | (Revenue - COGS) / Revenue; profitability of core product delivery | finance/gross-margin-rule-of-40.md |
| Rule of 40 | Growth Rate + Profit Margin ≥ 40%; growth-profitability balance | finance/gross-margin-rule-of-40.md |
... and much more in the full download.