---name: finance-metrics-quickref
argument-hint: "[metric name]"
description: Look up SaaS finance metrics, formulas, and benchmarks fast. Use when you need a quick metric definition, formula, or benchmark during analysis.
intent: >-
Quick reference for any SaaS finance metric without deep teaching. Use this when you need a fast formula lookup, benchmark check, or decision framework reminder. For detailed explanations, calculations, and examples, see the related deep-dive skills.
type: component
best_for:
- "Quick metric lookups during product or finance reviews"
- "Checking formulas and benchmarks without reading a long explainer"
- "Refreshing decision rules for common SaaS metrics"
scenarios:
- "What is the formula for NRR and what is a good benchmark?"
- "Give me a quick reference for CAC payback and Rule of 40"
- "I need a fast SaaS metrics cheat sheet for a business review"
---## Purpose
Quick reference for any SaaS finance metric without deep teaching. Use this when you need a fast formula lookup, benchmark check, or decision framework reminder. For detailed explanations, calculations, and examples, see the related deep-dive skills.
This is not a teaching tool—it's a cheat sheet optimized for speed. Scan, find, apply.
## Input
**Works best with:** The metric you need — name it and get the formula, benchmark, and decision context.
**Also useful:** Your numbers, if you want the formula applied on the spot.
Anything supplied with the invocation itself — text after the skill name, a pasted context dump, or an appended `ARGUMENTS:` line — counts as answers already given. Use it and skip whatever it covers; don't re-ask.
**Arriving empty-handed? That works too.** Ask for the metric family you're working in (revenue, retention, efficiency, capital) and scan from there.
**Example invocation:** `Quick ref: burn multiple — formula, benchmark, and whether 1.7 is bad for Series B.`
| **Gross Margin** | (Revenue - COGS) / Revenue × 100 | % of revenue after direct costs | SaaS: 70-85% good; <60% concerning | Gross margin <60% or declining |
| **CAC** | Total S&M Spend / New Customers | Cost to acquire one customer | Varies: Ent $10K+ ok; SMB <$500 | CAC increasing while LTV flat |
| **LTV** | ARPU × Gross Margin % / Churn Rate | Total revenue from one customer | Must be 3x+ CAC; varies by segment | LTV declining cohort-over-cohort |
| **Gross vs. Net Revenue** | Net = Gross - Discounts - Refunds - Credits | What you actually keep | Refunds <10%; discounts <20% | Refunds >10% (product problem) |
| **Revenue Concentration** | Top N Customers / Total Revenue | Dependency on largest customers | Top customer <10%; Top 10 <40% | Top customer >25% (existential risk) |
| **Revenue Mix** | Product/Segment Revenue / Total Revenue | Portfolio composition | No single product >60% ideal | Single product >80% (no diversification) |
| **Cohort Analysis** | Group customers by join date; track behavior | Whether business improving or degrading | Recent cohorts same/better than old | Newer cohorts perform worse |
| **CAC Payback by Channel** | CAC / Monthly Contribution (by channel) | Payback by acquisition channel | Compare across channels | One channel far worse than others |
| **Gross Margin Payback** | CAC / (Monthly ARPU × Gross Margin %) | Payback using actual profit | Typically 1.5-2x simple payback | Payback using margin >36 months |
| **Unit Economics** | Revenue per unit - Cost per unit | Profitability of each "unit" | Positive contribution required | Negative contribution margin |
| **Segment Payback** | CAC / Monthly Contribution (by segment) | Payback by customer segment | Compare to allocate resources | One segment unprofitable |
| **Incrementality** | Revenue caused by action - Baseline | True impact of marketing/promo | Measure with holdout tests | Celebrating revenue that would've happened anyway |
| **Working Capital** | Cash timing between revenue and collection | Cash vs. revenue timing | Annual upfront > monthly billing | Long payment terms killing runway |
---
### Quick Decision Frameworks
Use these frameworks to combine metrics for common PM decisions.
#### Framework 1: Should We Build This Feature?
**Ask:**
1. **Revenue impact?** Direct (pricing, add-on) or indirect (retention, conversion)?
2. **Margin impact?** What's the COGS? Does it dilute margins?
3. **ROI?** Revenue impact / Development cost
**Build if:**
- ROI >3x in year one (direct monetization), OR
- LTV impact >10x development cost (retention), OR
- Strategic value overrides short-term ROI
**Don't build if:**
- Negative contribution margin even with optimistic adoption
- Payback period exceeds average customer lifetime
**Metrics to check:** Revenue, Gross Margin, LTV, Contribution Margin
---
#### Framework 2: Should We Scale This Acquisition Channel?
**Ask:**
1. **Unit economics?** CAC, LTV, LTV:CAC ratio
2. **Cash efficiency?** Payback period
3. **Customer quality?** Cohort retention, NRR by channel
