Definition
DAU/MAU ratio (Daily Active Users divided by Monthly Active Users) is a product engagement metric that measures "stickiness" — what percentage of your monthly active users return on any given day. A ratio of 0.50 means that on an average day, 50% of your monthly actives are using the product. It is widely used in SaaS, consumer apps, and analytics platforms as a proxy for habit formation and retention quality.
Formula
Business impact
DAU/MAU is a leading indicator of long-term retention and revenue sustainability for subscription and usage-based products. A ratio above 20% is generally considered good; above 50% (Facebook historically benchmarked here) indicates exceptional stickiness. A declining DAU/MAU ratio is an early warning sign of engagement erosion — often visible weeks before it shows up in churn or revenue metrics, giving product teams time to respond.
The challenge
DAU/MAU is typically calculated from event tracking data stored in a data warehouse (Snowflake, BigQuery, Redshift, PostgreSQL). It requires two aggregations — unique active users per day and unique active users per month — then a division. This is straightforward SQL but requires access to the raw event tables rather than a pre-built analytics dashboard.
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