Edge 2026
SaaS Corporate Finance Pure Edge Computation

SaaS Magic Number & Go-To-Market Capital Efficiency Calculator

Evaluates sales and marketing payback efficiency and capital allocation signals across scaling subscription software enterprises.

Formula: Magic Number = (Q_t ARR - Q_{t-1} ARR) * 4 / Q_{t-1} S&M; Payback Months = 12 / Magic Number

Model Parameters

$ ARR
$ ARR
$ S&M
%

Outputs & Underwriting Summary

Calculation Status
HIGH EFFICIENCY (SCALE S&M ACCELERATION)
Verified Model
SaaS Magic Number
1.33
ARR Yield: $1.33 ARR / $1.00 S&M
CAC Payback & Expansion
9.0 Months
Net New ARR: $2,000,000 | HIGH EFFICIENCY (SCALE S&M ACCELERATION)
Quarterly Net New ARR of $2,000,000 against $1,500,000 prior S&M spend yields a Magic Number of 1.33. This corresponds to an estimated 9.0-month CAC payback horizon. Capital efficiency verdict: HIGH EFFICIENCY (SCALE S&M ACCELERATION).