07/04/2026
Most people track & celebrate revenue…
But
Very few understand what actually drives it 👇
📊 1. Customer Churn Rate (CCR)
✔ Formula:
Customers Lost / Total Customers
✔ Example:
20 lost / 200 total = 10% churn
📈 2. New Buyer Growth Rate (NBGR)
✔ Formula:
(New buyers this month – last month) / Last month
✔ Example:
(120 – 100) / 100 = 20% growth
💰 3. Lifetime Value (LTV)
✔ Formula:
Avg Customer Value × Lifespan
✔ Example:
₹2,000 × 12 months = ₹24,000
💸 4. Customer Acquisition Cost (CAC)
✔ Formula:
Sales + Marketing Cost / New Customers
✔ Example:
₹50,000 / 100 = ₹500 per customer
📊 5. Average Revenue Per User (ARPU)
✔Formula:
Total Revenue / Total Customers
✔ Example:
₹1,00,000 / 200 = ₹500 per user
⏳ 6. Runway
✔ Formula:
Cash Balance / Burn Rate
✔ Example:
₹5,00,000 / ₹50,000 = 10 months runway
⚡ 7. SaaS Quick Ratio
✔Formula:
(New MRR + Expansion MRR) / (Churn + Contraction)
✔Example:
(₹80k + ₹20k) / (₹30k + ₹10k) = 2.5 (Healthy)
📅 8. Monthly Recurring Revenue (MRR)
✔ Formula:
Customers × Avg Subscription
✔ Example:
200 × ₹500 = ₹1,00,000
🌍 9. Total Addressable Market (TAM)
✔Formula:
Avg Revenue per Customer × Total Potential Customers
✔ Example:
₹10,000 × 1,000 = ₹1 Cr Market
💡 Reality Check:
Rule: LTV should always be higher than CAC for a sustainable business.
Revenue is a result…
👉 KPIs are the drivers of that result.
If you don’t track these, you’re not scaling… you’re guessing.
🔥 Question for You:
Which KPI do you track the most in your business or job❓
