Measure how efficiently recurring-revenue growth is being generated from marketing investment, using a focused Excel workbook that converts monthly operating data into a clear SaaS Magic Number.
The template is designed for SaaS founders, finance teams, revenue operators, and investors who need a repeatable view of growth efficiency. Enter monthly recurring revenue (MRR) and marketing expenses, then review the calculated Magic Number by period and the accompanying chart to see how the relationship changes over time.
Quantify growth efficiency
Connect recurring-revenue expansion with the marketing investment used to support that growth.
Track the direction of the metric
Review period-by-period results instead of relying on one isolated efficiency reading.
Support spending discussions
Use the calculated trend as one input when reviewing whether customer-acquisition investment is producing sufficient recurring revenue.
What does the Magic Number help you analyze?
The Magic Number is a SaaS sales-efficiency indicator. In this workbook, it compares recent recurring-revenue growth with the marketing expenses associated with the preceding period, annualizing the change so the result can be reviewed consistently across the year. It is most useful as a directional operating metric rather than a stand-alone decision rule.
Recurring-revenue growth versus marketing spend: see whether increases in MRR are large enough relative to the investment made to generate them.
Changes in acquisition efficiency: identify periods when the metric improves, weakens, or reverses direction.
Consistency of the growth engine: distinguish a sustained pattern from a single strong or weak month.
Budget review context: bring a calculated efficiency measure into discussions about maintaining, reducing, or reassessing marketing activity.
Operating performance communication: present the metric in a compact table and chart for management or investor review.
What is inside the workbook?
The workbook uses a single structured monthly view. Yellow cells identify the operating inputs visible in the template, while the Magic Number row and chart present the calculated output. The layout keeps the source figures, the resulting metric, and its trend in one place for straightforward review.
Monthly MRR inputs
Enter monthly recurring revenue across the January-to-December timeline shown in the workbook.
Monthly marketing-expense inputs
Record the corresponding marketing expenses used in the efficiency calculation.
Calculated metric and chart
Review the SaaS Magic Number values and a column chart that makes changes across periods easier to scan.
The workbook view places monthly MRR and marketing-expense inputs above the calculated Magic Number row, with a chart below for period-by-period trend review.
Inputs, calculation, and trend in one view
The visible worksheet separates the two input lines from the calculated metric. Once the monthly figures are entered, the Magic Number values populate for the periods with enough historical data, and the chart displays those results from left to right. This makes it easier to trace an efficiency movement back to the underlying revenue and expense figures instead of reviewing the ratio without context.
How do you use the template?
Enter monthly recurring revenue
Replace the sample MRR figures with the monthly recurring revenue values for the business and period being analyzed.
Add monthly marketing expenses
Enter marketing expenses on the matching monthly timeline so the revenue and spending periods remain aligned.
Review the calculated Magic Number
Read the output row once sufficient prior-period data is available, then compare each result with the months around it.
Examine the charted trend
Use the column chart to identify whether efficiency is strengthening, weakening, or fluctuating across the displayed periods.
Use the result with operating context
Discuss the metric alongside retention, revenue quality, acquisition conditions, and the reasons behind changes in marketing spend.
Who is this template for?
This calculator is appropriate for SaaS founders evaluating growth efficiency, finance teams preparing recurring operating reviews, revenue leaders discussing acquisition investment, and investors assessing how effectively a subscription business converts marketing spend into recurring-revenue growth. It is best suited to organizations that can provide consistent monthly MRR and marketing-expense data and want a focused metric rather than a complete SaaS operating model.
Use the Magic Number alongside complementary SaaS metrics for a broader performance view. The Subscription Revenue workbook helps structure recurring-revenue analysis, while the SaaS Quick Ratio calculator focuses on the balance between recurring-revenue gains and losses. For a wider growth-quality lens, review the Rule of 40 in SaaS calculator; teams examining workforce productivity can also pair the analysis with the ROSE metric workbook.
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