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The Essential Metrics Every Startup Should Track
From MRR to churn cohorts — a founder's guide to the numbers that matter most in your first two years.
In the early days of a startup, it's tempting to track everything. But tracking too many metrics creates noise and dilutes focus. Here are the essential metrics that every SaaS startup should monitor in their first two years.
Monthly Recurring Revenue (MRR)
MRR is the heartbeat of your SaaS business. Track it broken down by new MRR, expansion MRR, and churned MRR to understand where your growth is coming from.
Customer Acquisition Cost (CAC)
Know how much it costs to acquire each customer, and make sure your LTV:CAC ratio is at least 3:1. If it's lower, you're likely burning cash faster than you're creating value.