Magic Number

Calculate Magic Number instantly with the exact formula and a worked example.

Magic Number

ARR at start of quarter$
ARR at end of quarter$
Sales & marketing spend, prior quarter$
Magic Number
0.8
Calculate Magic Number instantly with the exact formula and a worked example.
Assessment
Efficient — invest more in growth
ARR growth in quarter
2000000$

More about: Magic Number

What it calculates

The “Magic Number” calculator computes Magic Number from 3 parameters: arr at start of quarter ($), arr at end of quarter ($), sales & marketing spend, prior quarter ($).

Applied in business management, unit economics, and financial modeling.

Example calculation

With parameters ARR at start of quarter = 10,000,000 $, ARR at end of quarter = 12,000,000 $, Sales & marketing spend, prior quarter = 2,500,000 $ the result is 0.8.

How to use

  1. Enter arr at start of quarter, arr at end of quarter and sales & marketing spend, prior quarter — each field above is adjustable with a slider.
  2. Magic Number is calculated automatically as you type.
  3. Check the worked example below to see the formula applied to real numbers.
  4. Copy the result or bookmark this calculator.

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FAQ

How is Magic Number calculated?
The Magic Number calculator computes Magic Number from arr at start of quarter, arr at end of quarter, sales & marketing spend, prior quarter. Enter your values above and the exact formula is applied instantly; a worked example with real numbers is shown below.
Is the Magic Number calculator free?
Yes. It is completely free, needs no signup, runs entirely in your browser, and sends no data to any server.

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