Free Sales Magic Number Calculator
Calculate the SaaS Magic Number (sales efficiency). Free instant calculator with directional efficiency reference ranges.
Quick answer
The SaaS Magic Number is a sales-efficiency ratio that compares annualized incremental recurring revenue with prior-period sales and marketing spend.
Formula
Common version: Magic Number = (current quarter ARR − prior quarter ARR) ÷ prior quarter sales & marketing spend
Example
$300,000 of incremental ARR on $400,000 prior-quarter sales and marketing spend gives a 0.75 Magic Number.
How to interpret it
Different investors use slightly different versions. Keep the formula consistent when comparing periods.
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