A DAU/MAU calculator is a tool used to measure the engagement and stickiness of a product, app, or website by comparing its daily active users (DAU) with its monthly active users (MAU). The DAU/MAU ratio provides valuable insight into the success of a platform and the effectiveness of marketing strategies, allowing companies to make data-driven decisions for improvement.
Daily active users (DAU) refers to the number of unique users who interact with a product or service within a 24-hour period, while monthly active users (MAU) denotes the number of unique users who engage with a product or service within a 30-day timeframe. By calculating the ratio of DAU to MAU, businesses can better understand their user engagement patterns, identifying trends and potential areas for growth or optimization.
The components of a DAU/MAU calculator are straightforward, requiring just two inputs: the daily active users (DAU) and monthly active users (MAU). To calculate the DAU/MAU ratio, simply divide the DAU by the MAU. This ratio is expressed as a percentage, with a higher percentage indicating a higher level of user engagement.
For example, let's say an online gaming platform has 5,000 daily active users and 20,000 monthly active users. To calculate the DAU/MAU ratio, we would input these numbers into the calculator:
DAU/MAU = (DAU / MAU) x 100
DAU/MAU = (5,000 / 20,000) x 100
DAU/MAU = 0.25 x 100
DAU/MAU = 25%
In this case, the DAU/MAU ratio is 25%, which suggests that on average, 25% of the monthly active users are using the platform daily. A higher ratio indicates a more engaged user base, meaning that users are more likely to return frequently to the platform, which is desirable for businesses aiming to cultivate loyalty and encourage user retention.
What is a good DAU/MAU?
Good DAU/MAU ratios can be quite different across industries. Obviously the closer it gets to 100%, the better, but the simplicity ends there. The best-in-class products geared towards everyday use (productivity apps or social media platforms) can have DAU/MAUs of up to 50%.
But for most industries, according to a Mixpanel study of 2017, the DAU/MAU Ratio benchmark for SaaS B2B and B2C apps is 10-25%. B2C apps have a higher DAU/MAU Ratio, while the range is much lower for B2B.
Here's the breakdown of DAU/MAUs accross the industries studied in the report:
50th Percentile DAU/MAU
90th Percentile DAU/MAU
Another helpful resource to on all-things DAU/MAU is David Sacks' 2020 article, where the former COO of Paypal and general partner of Craft Venture, assets that 50% DAU/MAU is the "holy grail" of saas engagement.
One limitation of the metric is that it's use is skewed towards products with daily or very frequent use. For products or services with weekly, monthly or less frequent use cases, the DAU/MAU will not be very meaningful. The ratio will inevitably be very low, and might be the wrong metric to optimize in your business.
In summary, a DAU/MAU calculator is a valuable tool for measuring user engagement in a product, app, or website, offering insights that can inform marketing strategies and product improvements. By simply inputting the daily active users and monthly active users, businesses can calculate the ratio and assess the success of their platform in maintaining user engagement.