DAU Ratio

The DAU Ratio, also known as the DAU/MAU ratio, is a metric used to measure user engagement and product stickiness by comparing the number of daily active users (DAU) to monthly active users (MAU). It is calculated by dividing the DAU for a specific day by the MAU for the preceding 30-day period, resulting in a percentage. A higher ratio indicates that a larger portion of the monthly user base is returning to the product on a daily basis.

This ratio is one of the most important operating metrics for subscription-based businesses, social media platforms, and mobile applications, as it provides insight into how habitual a product is for its users. A consistently high or growing DAU Ratio suggests strong product-market fit and user retention, which are leading indicators of long-term value and revenue potential. Finance and product teams use this metric to assess the impact of feature releases, marketing campaigns, and overall platform health.

In planning and analysis, the DAU Ratio is a critical input for financial forecasting and modeling. A stable or increasing ratio can support assumptions of lower churn and a higher Customer Lifetime Value (CLV / LTV), directly influencing revenue projections and company valuation.