SAAS Economics Efficiency Metrics

## Purpose

Determine whether your SaaS business model is fundamentally viable and capital-efficient. Use this to calculate unit economics, assess profitability, manage cash runway, and decide when to scale vs. optimize. Essential for fundraising, board reporting, and making smart investment trade-offs.

This is not a finance reporting tool—it's a framework for PMs to understand whether the business can sustain growth, when to prioritize efficiency over growth, and which investments have positive returns.

## Input

**Works best with:** The question you're answering (can we scale? raise? extend runway?) or the metrics you want evaluated.
**Also useful:** Your numbers — CAC, gross margin, burn, runway, magic number — partial data is workable.

Anything supplied with the invocation itself — text after the skill name, a pasted context dump, or an appended `ARGUMENTS:` line — counts as answers already given. Use it and skip whatever it covers; don't re-ask.

**Arriving empty-handed? That works too.** Use it as a reference: read the metric sections relevant to your stage and decision.

**Example invocation:** `Are we efficient enough to scale? CAC $9K, gross margin 72%, burn multiple 2.1, magic number 0.6.`

## Key Concepts

### Unit Economics Family

Metrics that measure profitability at the customer level—the foundation of sustainable SaaS.

**Gross Margin** — Percentage of revenue remaining after direct costs (COGS).