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Enterprise SaaS Magic Number Simulator.

Calculate the legendary "Magic Number" metric used by growth equity firms to determine if injecting massive capital into a Sales & Marketing engine will generate explosive ARR or just burn cash.

## The 'Magic Number' Formula

If a SaaS company has $10M in the bank, should they hire 50 new sales reps and spend $3M on LinkedIn ads? The "Magic Number" mathematically answers this question. It measures how many dollars of Annual Recurring Revenue you generate for every $1.00 you spent on Sales & Marketing in the previous quarter.

### FAQ

**Q: What is a good Magic Number?**
A: `1.0`. A target of 1.0 means that if you spend $1M on marketing in Q1, it yielded exactly $1M in Net New ARR in Q2. If your magic number is `0.4`, it implies your product is incredibly hard to sell, or your sales team is broken. Pouring VC money into a company with a 0.4 Magic Number is equivalent to setting cash on fire, because the CAC (Customer Acquisition Cost) Payback period will exceed 36 months.