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Editorial Policy

Formulas and benchmarks last reviewed: October 2026

SaaS Metrics Calculators publishes a small number of things: six calculators, the formula behind each one, and the benchmark ranges used to judge the result. This page explains how each of those is produced, which parts are mechanically checked, and how to get something fixed.

What this site publishes

Six calculators, a reference table of benchmark ranges, and written explanations of the metrics they compute. There is no news feed, no sponsored content and no paid placement of any product. The scope is deliberately narrow: if a metric cannot be defined precisely enough to compute, it is not published here.

How the formulas are defined

Every formula is implemented once, in a single shared module, and imported by the calculator that displays it. A formula is never retyped inside a page template, so the number a visitor sees and the number written in the explanatory text cannot drift apart.

The shared module is covered by an automated test suite that runs against the same code the site ships. The cases that matter most are the degenerate ones โ€” a zero churn rate (infinite lifetime), a business whose revenue covers its costs (unbounded runway), and non-numeric input โ€” because those are the inputs where a hand-built spreadsheet usually produces a blank cell or a wrong number instead of an honest answer.

Where two conventions exist, the site states which one it uses rather than silently picking one. The clearest example is LTV, which is computed from gross profit rather than revenue; using revenue inflates the result by roughly the inverse of the gross margin.

Where the benchmark numbers come from

The comparison bands are drawn from publicly published guidance by venture investors and SaaS analytics firms โ€” Bessemer, OpenView and a16z among them โ€” plus the ranges routinely reproduced in investor updates. They are not a proprietary dataset and they are not surveyed from this site's visitors.

Because the sources disagree with each other and with themselves year to year, the tables are presented as ranges with a segment label attached, and each table carries a footnote naming the kind of source it came from. A blended industry number will flatter a self-serve product and alarm an enterprise one, so the honest comparison is against your own segment and your own trend rather than against a single published figure.

Dates and updates

Pages that carry formulas or benchmark figures show the month they were last reviewed. Substantive changes are listed in the update log at the bottom of this page with the date they were made. Cosmetic edits are not logged; a change to a formula, a benchmark range or a stated conclusion always is.

Corrections

If a formula is wrong, a benchmark is out of date, or an explanation is misleading, write to [email protected] with the page and the problem. Arithmetic errors are treated as urgent and fixed ahead of anything else; a corrected figure is noted in the update log rather than changed silently.

Corrections to the arithmetic are especially welcome, because the entire premise of the site is that you can use the result without re-deriving it by hand.

Advertising and independence

The calculators are free and there is no paid tier. Hosting is covered by advertising served through third-party vendors including Google. Advertisers have no influence over what is published, no advance sight of a page, and no ability to change a formula or a benchmark range. Ads are placed around the content and never inside a calculator result.

Details of the cookies and vendors involved are in the privacy and cookie policy.

Update log

  • 2026-11-04 โ€” Removed the reserved advertising placeholders. Added this page and the terms of use.
  • 2026-10-26 โ€” Added the embeddable versions of six calculators and the /embeds catalogue.
  • 2026-10-20 โ€” Added fourteen long-form guides and the consolidated benchmark tables.
  • 2026-10-12 โ€” Site launched with six calculators.