SaaS Magic Number Calculator
Evaluate your Go-To-Market sales efficiency. Calculate your SaaS Magic Number and CAC Payback period against institutional venture capital benchmarks.
SaaS Magic Number & Sales Efficiency Calculator
Calculate your SaaS Magic Number and CAC Payback period to benchmark Go-To-Market efficiency and capital allocation.
For every $1 spent on Sales & Marketing, you add $1.33 in annualized new ARR.
Measuring Go-To-Market Capital Efficiency
In B2B SaaS, knowing when to accelerate sales hiring is the difference between hyper-growth and burning through cash reserves. The SaaS Magic Number provides clear insight into whether your revenue engine is ready to scale.
Key Features
Standard Bessemer & Scale Venture Formula
Implements the recognized formula used by top venture capital firms to evaluate Go-To-Market efficiency.
CAC Payback Period Integration
Calculates the exact number of months required to recoup sales and marketing spend.
Common Use Cases
- ✓B2B SaaS CEOs & CFOs
Decide whether to accelerate sales hiring or pause expansion to optimize sales unit economics.
- ✓Venture Capital Due Diligence
Evaluate growth efficiency during Series A, B, and C investment screening.
Frequently Asked Questions
What is the SaaS Magic Number?
The SaaS Magic Number is a metric that measures the efficiency of a software company's go-to-market spend. It compares quarterly net new annualized recurring revenue (ARR) to the prior quarter's sales and marketing expenditures.
What does a Magic Number of 1.0 mean?
A Magic Number of 1.0 means that for every $1 spent on sales and marketing, the company generates $1 of new annual recurring revenue, recouping its acquisition costs within approximately 12 months.
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