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SaaS metrics based planning: A template for top-down revenue planning

Fast-growing SaaS companies are using a new, proven approach to modeling revenue with just five core SaaS metrics and the Rule of 40. This template will show you how to use it to shorten the planning cycle and drive greater efficiency in your business.

Create a robust revenue model in minutes

SaaS metrics based planning relies on just five core metrics and the Rule of 40 – the SaaS “Magic Number”. With this simple template, you just enter your current annual recurring revenue (ARR) and update your targets for the next fiscal year for:

These values you use for your targets can reflect any combination of your baseline values (or base rates), board-committed numbers, or benchmarks you want to achieve in your business.

Once entered, the model will output the upper bounds (constraints) for five key downstream metrics:

  • Your target ARR along with new and expansion ARR

  • Churn ARR and monthly churn rate %

  • Cost of Goods Sold (COGS)

  • EBITDA and EBITDA Margin %

  • Operating expenses with sales & marketing expenses broken out

An easy, proven way to model your revenue

An intuitive, easy-to-use template you’ll enjoy working with
No formulas needed. Just plug in your targets to get results
Shorten your planning cycle and drive faster alignment across teams
“SaaS Metrics Based Planning helps SaaS leaders be the architect of their business. It helps you create more accurate and feasible plans while significantly reducing planning cycles.

But more importantly, it gives you the confidence to achieve the outcomes set at the board-level. We have observed first-hand how SaaS companies who have adopted this approach are more predictable and thus attract much higher valuations.”

Use our template to quickly create targets all your teams can agree on

Level up your SaaS financial modeling with Drivetrain!

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