The Magic Number
Measure your sales and marketing efficiency
From Revenue Architecture
Magic Number = Net New ARR (Quarter) ÷ S&M Spend (Previous Quarter)
The Magic Number measures how efficiently your sales and marketing dollars convert into ARR. According to Revenue Architecture, a Magic Number > 0.75 indicates efficient, scalable growth. Above 1.0 means you should consider increasing S&M spend.
Input Parameters
Results
Your Magic Number
0.00
Sales Efficiency Ratio
CAC Payback Period
0
months to recover CAC
Interpretation
Enter your values to see the interpretation
Magic Number Benchmarks
< 0.5
Low Efficiency
0.5 - 0.75
Moderate
0.75 - 1.0
Good
> 1.0
Excellent
Strategic Actions
- • Magic Number > 1.0: Increase S&M investment to accelerate growth
- • Magic Number 0.75-1.0: Maintain current strategy, optimize incrementally
- • Magic Number < 0.75: Improve efficiency before scaling spend
Fill in the parameters and click Calculate to see your Magic Number