SaaS Magic Number Calculator
Sales efficiency from new ARR versus prior sales & marketing spend.
Need SaaS Magic Number fast? SaaS founders, operators and investors use the SaaS Magic Number Calculator to skip the spreadsheet and get a reliable answer in one step. It's 100% free, runs privately in your browser, and the result is ready to drop into a pitch, plan or report.
About SaaS Magic Number Calculator
Need to work out SaaS Magic Number fast? The SaaS magic number measures how efficiently sales & marketing spend turns into new recurring revenue. The SaaS Magic Number Calculator uses the standard formula — Magic Number = New ARR this quarter ÷ Prior quarter's Sales & Marketing spend — and updates the moment you type. For example, $2M of new ARR on $2.5M of prior S&M spend gives a magic number of 0.8. It's 100% free, private (your numbers never leave your device) and works on any device.
How to use SaaS Magic Number Calculator
- 1Enter the new ARR added this quarter and last quarter's sales & marketing spend into the calculator.
- 2The SaaS Magic Number is computed automatically using the formula Magic Number = New ARR this quarter ÷ Prior quarter's Sales & Marketing spend — there's no button to press.
- 3Change any input to model a different scenario, then note or copy the result.
Why use SaaS Magic Number Calculator?
- ✓Calculates SaaS Magic Number instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the numbers you enter stay private
- ✓Updates live as you type — perfect for comparing scenarios
Frequently asked questions
How do you calculate SaaS Magic Number?+
The SaaS magic number measures how efficiently sales & marketing spend turns into new recurring revenue. The formula is: Magic Number = New ARR this quarter ÷ Prior quarter's Sales & Marketing spend. For example, $2M of new ARR on $2.5M of prior S&M spend gives a magic number of 0.8.
What is a good magic number?+
Above 0.75 is usually efficient enough to invest more in growth; below 0.5 suggests your go-to-market needs work before scaling spend.
Is the SaaS Magic Number Calculator free to use?+
Yes — it's completely free, with no sign-up, no login and no usage limits. You can run it as many times as you like.
Is my data private?+
Yes. The SaaS Magic Number Calculator runs entirely in your browser, so the figures you enter are never uploaded or stored on any server.
Embed SaaS Magic Number Calculator on your website
Want SaaS Magic Number Calculatoron your own site? Paste this snippet into any HTML page — it's free, with no API key or sign-up. The tool loads in an iframe and keeps working exactly as it does here.
<iframe src="https://tooljolt.com/tools/saas-magic-number-calculator" width="100%" height="640" style="border:1px solid #e5e7eb;border-radius:12px;max-width:680px" title="SaaS Magic Number Calculator — ToolJolt" loading="lazy"></iframe>