KPI Glossary
Clear definitions for the KPIs your business should be tracking. Each term includes the formula, benchmarks from real data, and a link to our free calculator.
Annual Recurring Revenue (ARR)
The annualized value of recurring subscription revenue, calculated as MRR multiplied by 12.
Churn Rate
The percentage of customers or subscribers who cancel during a given time period.
Customer Acquisition Cost (CAC)
Total sales and marketing spend divided by new customers acquired in a given period.
Customer Lifetime Value (CLV)
The total revenue a business expects from a single customer over the entire relationship.
EBITDA
Earnings before interest, taxes, depreciation, and amortization. Measures operating profitability.
Gross Margin
Revenue minus cost of goods sold, divided by revenue, expressed as a percentage.
Monthly Recurring Revenue (MRR)
Predictable revenue a subscription business earns each month from active subscriptions.
Net Promoter Score (NPS)
Customer loyalty metric calculated by subtracting the percentage of detractors from promoters.
Return on Ad Spend (ROAS)
Revenue generated for every dollar spent on advertising.
Return on Investment (ROI)
Net profit from an investment divided by its cost, expressed as a percentage.
10 definitions available