18 Essential Business KPIs Every Founder Should Track
You don't need to track all 18 at once.
You need to know they exist and pick the right ones for where your business actually is right now.
I organized them into four groups. Start with the one that connects most directly to the pain point you're facing today.
Group 1: Money (financial health)
- 1Monthly revenue (MRR or top line): how much comes in each month. The most basic number, yet plenty of owners can't recall the exact figure.
- 2Gross margin: revenue minus direct cost of delivery. Tells you whether the delivery model is viable.
- 3Net margin: what's left after everything (fixed, variable, taxes). The number that actually pays your bills.
- 4Burn rate: how much goes out each month. If more goes out than comes in, you're burning through reserves.
- 5Runway: with current cash and current burn, how many months can you survive. The indicator that prevents fatal surprises.
Group 2: Customers (acquisition and retention)
- 1CAC (Customer Acquisition Cost): how much it costs to bring in one new customer. Marketing plus sales spend divided by customers acquired.
- 2LTV (Customer Lifetime Value): how much a customer generates across the full relationship. If LTV is lower than CAC, every new customer is a loss.
- 3Churn: how many customers leave per period. 5% per month sounds small. Over a year, you lose nearly half the base.
- 4Conversion rate: of everyone who arrives (leads or visitors), how many become customers. Measures funnel efficiency.
- 5NPS or satisfaction: do your customers recommend you? Indicates relationship health and likelihood of retention.
And the other 8?
Revenue per employee, average ticket size, rework rate, monthly growth, LTV to CAC ratio, recurring vs one-time revenue, delivery time, and break-even point. All important, all depend on the stage of the business.
How to actually use this list
Don't track everything at the same time. Pick 3 to 5 indicators that answer the most urgent question your business faces today.
Surviving? Group 1.
Growing? Group 2.
Operations strained? Efficiency KPIs from the second 8.
The right indicator at the right moment is worth more than a spreadsheet with 50 metrics nobody looks at.
The dashboard calculates all 18. You choose which ones matter right now.
Enter your numbers and the 18 indicators are calculated instantly. Pick the ones that matter most right now. No sign-up required.
Open KPI Dashboard →Keep reading about KPIs
Gross Burn vs Net Burn: Which One to Use for Runway
Gross burn and net burn are two numbers — and both matter. Using the wrong one for runway distorts cash reality by months.
MRR vs ARR: The Real Difference and When to Use Each
MRR and ARR aren't the same metric viewed from different angles. They serve different functions — and using the wrong one distorts decisions.
SaaS Metrics Guide: The 8 Numbers That Actually Matter
MRR, churn, CAC, LTV, runway, burn rate. The 8 numbers that separate SaaS that survives from SaaS that dies — no fancy formulas, real numerical examples.
Frequently asked questions
What are the most important KPIs for a business?
The 5 financial KPIs (MRR/revenue, gross margin, net margin, burn rate, runway), the 5 customer KPIs (CAC, LTV, churn, conversion rate, NPS), and 8 complementary ones depending on the stage of the business. Don't track all of them at the same time. Pick 3 to 5 that answer your most urgent question: surviving (financial), growing (customer), or scaling (operational).
Why is tracking 50 KPIs at once a bad idea?
Because it creates noise and nobody actually reviews anything. The practical rule is 3 to 5 active KPIs at a time, aligned with the most urgent question of the business: survive (financial), grow (customer), or scale (operational). More than that turns into spreadsheet decoration.
What's the difference between a KPI and a metric?
A metric is any number you can measure. A KPI is a metric that's connected to a business goal and triggers action when it falls outside expected range. Every KPI is a metric, but not every metric is a KPI.
How do I choose the right KPIs for my business?
Start with the most urgent question. If you need to survive, look at financial KPIs (runway, burn, margin). If you need to grow, look at customer KPIs (CAC, LTV, churn). If operations are at the limit, look at efficiency KPIs (revenue per employee, delivery time). The right KPI is the one that drives the most urgent decision.