Mathematical Formula

Engagement Ratio = (DAU / MAU) * 100

What is DAU/MAU?

The DAU/MAU ratio represents the proportion of your monthly active customer base that logs into your workspace, uses your API, or accesses your system on any single day.

Where is DAU/MAU Used?

SaaS analytics, interactive platform dashboards, product health checks, and investor reporting.

What Does It Mean & Strategic Value

Highly indicative of product value. A ratio of 20% means users log in about 6 days a month. A ratio of 50%+ indicates an essential daily tool (like Slack).

Down-Funnel Impact

Higher engagement directly improves customer retention, lowers monthly churn, and leads to organic upgrades.

Real-World Usage & Auditing

Used by product product managers to schedule user engagement campaigns and guide feature rollouts.

Why DAU/MAU Matters for Growth

A key health metric used by tech VCs to evaluate consumer habit loops and product-market fit.

Operational Example Scenario

If a project tool has 10,000 Monthly Active Users (MAU) and averages 3,000 Daily Active Users (DAU), its stickiness score is 30%.