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%.