SaaS Metrics

SaaS Magic Number Calculator

Measure sales efficiency by annualising sequential quarterly subscription revenue growth against prior-quarter sales and marketing spend.

Enter your assumptions

Formula and methodology

Magic number = 4 × (Current-quarter revenue − Previous-quarter revenue) ÷ Prior-quarter sales and marketing spend

Use consistent definitions, dates and fully diluted ownership assumptions where relevant.

Worked example

Revenue rising ₹10 lakh with ₹20 lakh prior spend gives 2.0.

How to use

  1. Enter the requested assumptions using consistent units.
  2. Select Calculate.
  3. Review the method and limitations before using the estimate.

Frequently asked questions

What does this calculator estimate?

Measure sales efficiency by annualising sequential quarterly subscription revenue growth against prior-quarter sales and marketing spend.

Is this result guaranteed?

No. It is a simplified scenario and actual commercial or investment outcomes may differ.

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Disclaimer: This is a simplified planning estimate. It is not professional financial, accounting, legal or tax advice.