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SaaS Magic Number · Engineering Firms

SaaS Magic Number for Engineering Firms.

Sales efficiency: ARR added per dollar of S&M spend.

Engineering practices, engineered to scale.

Finance & Strategy · Engineering Firms

Why engineering firms operators use the saas magic number.

Calculate the Magic Number — net new ARR ÷ prior-quarter sales & marketing spend. Above 1.0 = invest more aggressively. Below 0.5 = pull back.

Engineering firms — civil, structural, mechanical, electrical — are professional services businesses with unique constraints: project-based revenue, deep specialization, and complex stakeholder management. SAZ helps engineering firms scale revenue, productize services, and embed AI across project delivery.

Benchmarks

What good looks like — typical ranges to compare against.

< 0.5
Inefficient — pull back
0.5–0.75
Acceptable — tighten
0.75–1.0
Healthy — keep investing
> 1.0
Elite — invest more
The formula

How saas magic number is calculated.

Magic = (Net New ARR × 4) ÷ (Prior Q S&M Spend × 4)
Industry context

What changes when saas magic number is applied to engineering firms.

Project-based revenue volatility

Productization of recurring services

Talent leverage and utilization

Document, drawing, and report production

Run the numbers

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SaaS Magic Number · Engineering Firms

Want a senior partner to interpret your results?

Email info@Sedighi.ca or call (604) 632-4959. A senior partner responds within one business day.

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