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Magic Number Calculator

Compute SaaS Magic Number — quarterly sales efficiency. >1.0 invest more, <0.5 cut spend.

Net new ARR this quarter ($) ?

S&M spend this quarter ($) ?

Magic Number — Enter values to compute

Formula: 4 × Net New ARR / S&M Spend

Benchmarks

Magic Number (higher = more sales efficient)

Top 10% (p90)

1.5:1

Top quartile (p75)

1.0:1

Median (p50)

0.7:1

Bottom quartile (p25)

0.4:1

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