The free performance metrics hub built for managed service providers — calculate your Rule of 40, LTV, CAC, churn, and more in minutes. Presented by Computronix.
Revenue growth tells you one story. The metrics below tell you the whole truth — and the difference can mean the difference between scaling and stalling.
MSPs that track performance metrics grow 2–3× faster than those that don't. Knowing your CAC payback period alone can reshape your entire sales strategy.
Losing one ,000/mo client costs far more than the MRR — it wipes out months of gross profit and resets your payback clock. Measure it before it matters.
When it's time to raise capital, sell your MSP, or bring on a partner, buyers look at Rule of 40, LTV:CAC, and churn rate first. Know yours before they do.
A 9% churn rate feels fine until you see that top-quartile MSPs run below 3%. Context transforms data into urgency — and urgency drives change.
Your gross margin and average monthly revenue per client directly determine your payback period. If the math is broken, no amount of sales effort fixes it.
The Rule of 40 score combines revenue growth and profit margin into a single health indicator used by PE firms, SaaS investors, and MSP consolidators worldwide.
Enter your trailing 12-month numbers and get a full scorecard with benchmarks, status indicators, and priority action recommendations — instantly, for free.
Rule of 40 · CAC · Churn · Payback · LTV · LTV:CAC
These aren't just numbers — they're the language of MSP valuation, growth strategy, and operational health.
The Rule of 40 adds your revenue growth rate to your net profit margin. A score above 40 signals a healthy balance between growth and profitability — the benchmark used by PE firms and MSP acquirers worldwide.
Customer Acquisition Cost measures all sales and marketing investment required to win one new client. Include cash spend plus the value of owner time spent on biz dev for the most accurate picture.
Annual churn is the percentage of active clients you lose each year. At 10% churn, you replace your entire client base every decade — and every lost client erases months of gross profit that went into winning them.
Payback period tells you how many months of gross margin it takes to break even on a new client. A short payback period means your sales engine is efficient and cash-flow positive quickly.
Lifetime Value is the gross margin-adjusted total revenue you'll earn from a client before they churn. It directly determines how much you can profitably spend to acquire clients — and how much each client is really worth.
LTV:CAC is the ultimate test of business model health. It tells you how much lifetime value you generate for every dollar spent acquiring a client. Below 2× means growth is destroying value; above 5× may indicate under-investment.
These benchmarks are based on MSP industry data and SaaS/recurring-revenue best practices. Use them to contextualize your scorecard results.
| Metric | Top Quartile (Best-in-class) | Median (Acceptable) | Bottom Quartile (Needs work) | Why it matters |
|---|---|---|---|---|
| Rule of 40 | ≥ 50 | 25 – 39 | < 20 | Primary valuation metric for MSP buyers and PE firms |
| CAC per client | < ,000 | K – K | > 0,000 | Lower CAC = more capital available for service delivery |
| Annual churn rate | < 3% | 3% – 7% | > 10% | High churn is the #1 silent killer of MSP growth |
| CAC payback period | < 8 months | 8 – 18 months | > 24 months | Shorter payback = faster compounding growth |
| LTV per client | > 0,000 | 0K – 0K | < 0,000 | Higher LTV justifies larger CAC and longer contracts |
| LTV:CAC ratio | > 5× | 3× – 5× | < 2× | The single most important efficiency metric for MSP health |
| Gross margin | > 65% | 45% – 65% | < 40% | Drives LTV, payback period, and overall profitability |
* Benchmarks based on MSP industry surveys and SaaS recurring-revenue research. Individual results vary by market, vertical, and business model.
Computronix has been delivering managed IT services in Connecticut since 1997. We built this tool because we couldn't find one that worked the way MSPs actually think.
"I finally understand why we were growing but not making money. Our payback period was 28 months. This tool made the problem impossible to ignore."
"We used the scorecard to prep for a PE conversation. They literally used the same metrics. Walking in with my LTV:CAC pre-calculated changed the whole dynamic."
"The priority actions section told me exactly what to fix first. We reduced churn from 11% to 6% in one year by implementing the QBR program it recommended."
Run your free MSP performance scorecard in under 5 minutes. No account, no credit card, no catch.
Run My Free Scorecard ↑Presented free by Computronix · Stamford, CT · (203) 921-2665