Mgic

The SaaS Magic Number is a widely used formula to measure sales efficiency. It measures the output of a year’s worth of revenue growth for every dollar spent on sales and marketing. To think of it another way, for every dollar in S&M spend, how many dollars of ARR do you create. ^[1]
The ideal range for the magic number is between 1 and 1.5, indicating efficient and sustainable sales and marketing efficiency. Most investors accept magic numbers from 0.5 to 1 because it shows that the company is on the right track. ^[2]