Startup Guides & Benchmarks
Plain-English explainers on the metrics, benchmarks and terms every founder gets asked about — each with a working calculator.
What is a good LTV:CAC ratio?
The widely cited healthy LTV:CAC ratio is 3:1. Learn what it means, why 3:1 is the target, what too-high and too-low signal, and calculate yours instantly.
What is a good SaaS churn rate?
Good monthly SaaS churn is roughly 1% or lower for established companies; SMB tools run higher than enterprise. See benchmarks by segment and calculate your impact.
What is a good CAC payback period?
A good CAC payback period for SaaS is under 12 months; under 18 is acceptable. Learn how to calculate it on a gross-margin basis and what drives it.
The Rule of 40, explained
The Rule of 40 says a healthy SaaS company's growth rate plus profit margin should exceed 40%. Learn how to calculate it, why it matters, and the trade-off it captures.
Net revenue retention (NRR) benchmarks
Good net revenue retention for SaaS is 100%+, with best-in-class above 120%. Learn how NRR is calculated, why it matters, and benchmarks by segment.
SaaS gross margin benchmarks
Healthy SaaS gross margins are typically 70–85%. Learn what counts in cost of goods sold for SaaS, why margin matters, and how it affects LTV and the Rule of 40.
What is a SAFE note?
A SAFE is a simple agreement for future equity that converts to shares at your next priced round. Learn how caps, discounts and conversion work, with a calculator.
How much runway should a startup have?
Most startups aim for 18–24 months of runway after a raise and start fundraising with 6+ months left. Learn the benchmarks and calculate your own runway.
Average startup burn rate by stage
Burn rate scales with stage — from a few thousand a month pre-seed to hundreds of thousands at Series A+. Learn typical ranges, the burn multiple, and calculate yours.
How much dilution in a seed round?
Seed rounds typically dilute founders 10–25%, with 15–20% most common. Learn what drives dilution, how option pools add to it, and model your own cap table.