Quick Answer (TL;DR)
DAU/WAU Ratio measures proportion of weekly users who use the product daily. The formula is DAU / WAU x 100. Industry benchmarks: 40-60% is strong. Track this metric when measuring weekly engagement intensity.
What Is DAU/WAU Ratio?
Proportion of weekly users who use the product daily. This is one of the core metrics in the engagement metrics category and is essential for any product team serious about data-driven decision making.
DAU/WAU Ratio measures how deeply users interact with your product after the initial activation. Strong engagement is the bridge between activation and retention --- users who engage deeply are far more likely to stick around and eventually pay (or pay more).
Understanding dau/wau ratio in context --- alongside related metrics --- gives you a more complete picture than tracking it in isolation. Use it as part of a balanced metrics dashboard.
The Formula
DAU / WAU x 100
How to Calculate It
Suppose you measure dau at 500 and wau at 2,000 in a given period:
DAU/WAU Ratio = 500 / 2,000 x 100 = 25%
This tells you that one quarter of the base is converting or meeting the criteria.
Benchmarks
40-60% is strong
Benchmarks vary significantly by industry, company stage, business model, and customer segment. Use these ranges as starting points and calibrate to your own historical data over 2-3 quarters. Your trend matters more than any absolute number --- consistent improvement is the goal.
When to Track DAU/WAU Ratio
When measuring weekly engagement intensity. Specifically, prioritize this metric when:
You are building or reviewing your metrics dashboard and need engagement indicators
Leadership or investors ask about engagement performance
You suspect a change in product, pricing, or go-to-market strategy has affected this area
You are running experiments that could impact dau/wau ratio
You need a quantitative baseline before making a strategic decision
How to Improve
Build habit loops. Design triggers (notifications, emails, integrations) that bring users back to perform the core action on a regular cadence. Habits drive sustainable engagement.
Improve feature discovery. Users cannot engage with features they do not know exist. Use contextual tips, progressive disclosure, and smart defaults to surface relevant capabilities at the right time.
Study power users. Your most engaged users reveal the product's highest-value workflows. Analyze their behavior patterns and find ways to guide other users toward similar usage.
Common Pitfalls
Optimizing one side at the expense of the other. Improving the ratio by cutting the denominator (e.g., reducing investment) can be counterproductive. Always consider both sides holistically.
Confusing activity with value. High engagement numbers can mask users who are struggling rather than thriving. Pair engagement metrics with satisfaction and outcome metrics.
Measuring without acting. Tracking this metric is only valuable if you have a process for reviewing it regularly and a playbook for responding when it moves outside acceptable ranges.
Related Metrics
DAU/MAU Ratio (Stickiness) --- proportion of monthly users who use the product daily
Session Duration --- average time spent per session
Monthly Active Users (MAU) --- unique users active in a 30-day window
Sessions Per User --- average number of sessions per user per period
Product Metrics Cheat Sheet --- complete reference of 100+ metrics