Grade My SaaS

What Is a SaaS Health Score?

A SaaS health score is a composite metric that evaluates a software-as-a-service business across multiple dimensions — growth velocity, unit economics, retention, capital efficiency, revenue quality, and engagement. Instead of looking at a single KPI in isolation, a health score gives you an at-a-glance grade (A+ through F) that captures the overall fitness of your business. Think of it like a credit score for your SaaS: it synthesizes many signals into one actionable number that tells you whether you're on track, falling behind, or crushing it relative to peers at the same stage.

The 6 Dimensions of SaaS Health

Growth Velocity measures how fast your recurring revenue is growing month over month. Strong growth signals product-market fit and market demand. Unit Economics tracks the relationship between customer lifetime value and acquisition cost — the fundamental equation of SaaS profitability. Retention & Expansion reveals how well you keep customers and grow revenue from existing accounts; high NRR is the hallmark of elite SaaS companies. Capital Efficiency shows how much you burn for each dollar of new ARR — the burn multiple is the metric VCs watch most closely in 2024+. Revenue Quality evaluates ARR per employee and expansion revenue percentage. Engagement & Activation measures trial conversion and monthly active usage.

SaaS Benchmarks by Stage: Seed to Series C

Benchmarks mean nothing without stage context. A 15% monthly growth rate is exceptional for a Series B company but merely average for a pre-seed startup finding product-market fit. This calculator adjusts all benchmarks based on your company stage — from Pre-Seed through Series C+ — using data from industry reports, public filings, and aggregated SaaS benchmark studies. Bootstrapped companies get their own benchmark profile that emphasizes profitability and capital efficiency over growth velocity.

How to Improve Your SaaS Grade

The improvement simulator shows you exactly where to focus. In most cases, reducing churn delivers the highest ROI — every percentage point of churn improvement compounds across your entire customer base every month. Next, focus on unit economics: reducing CAC through better conversion funnels or increasing LTV through expansion revenue. The tool's priority ranking sorts improvement opportunities by overall score impact, so you always know what to fix first.

Is Your SaaS Ready for Fundraising?

Investor readiness isn't just about having strong overall metrics — it requires no critical weaknesses. A SaaS with an A in growth but a D in retention will struggle in diligence. This tool evaluates readiness based on minimum threshold scores per stage, the absence of critical dimension failures, and the overall percentile ranking among peers. It also estimates implied valuation ranges based on ARR multiples typical for your stage and health zone.

Frequently Asked Questions