VC & PE Glossary
What Is DAU/MAU?
Updated
Definition
DAU/MAU is the ratio of daily active users to monthly active users — a shorthand for how often monthly users return on a typical day, often called stickiness.
Useful for: Founders, Investors
DAU/MAU divides daily active users by monthly active users to estimate stickiness — how frequently your monthly user base shows up on an average day.
How it works
If MAU is 500,000 and average DAU is 100,000, DAU/MAU = 20%. Messaging and social products often target higher ratios because daily opens drive ad impressions and network effects. Utilities used weekly may show lower ratios but still be healthy businesses.
Teams calculate using consistent active definitions across both numerators and denominators. Some use rolling 30-day MAU vs calendar month; document the method.
Stickiness complements cohort retention: a product can have decent month-one retention but low DAU/MAU if usage clusters on weekends only — important for staffing push notifications and sales promises.
Cross-app benchmarks are tricky; compare within category and track your own trend line over time rather than chasing generic “good” thresholds.
Why it matters
- Founders: Improving DAU/MAU usually means core loop improvements, not paid install spikes. Feature work should target repeat triggers.
- Investors: Sudden DAU/MAU drops after a redesign or paywall change signal product regressions before revenue impact appears.
Common mistake
Optimizing push notifications to inflate DAU without deepening value — users open and churn, stickiness looks flat while satisfaction falls.
Related ideas
See also DAU, MAU, retention curves, and engagement loops.
Related terms
- DAU — DAU (Daily Active Users) counts how many unique users engage with a product on a given day — a core traction metric for consumer apps and platforms.
- KPI — A KPI — key performance indicator — is a measurable metric tied to a specific business goal, used to track whether a company is on track and to align teams and investors on what "good" looks like.
Common questions
Short answers for founders, LPs, and operators