.svg)
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:
Annual growth rate %
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
Use our template to quickly create targets all your teams can agree on
More related content
Level up your SaaS financial modeling with Drivetrain!
Schedule a Demo
