Glossary • 22 terms
SaaS Metrics Encyclopedia
Short, practical definitions with formulas and examples. Each term links to tools and related concepts.
Activation Rate
Share of new users reaching a defined first value.
Annual Recurring Revenue (ARR)
Annualized subscription revenue based on current contracts.
Average Revenue Per User (ARPU)
Average monthly revenue per customer or account.
Break‑even
Point where total revenue equals total costs.
Burn Rate
Net cash outflow per month.
CAC Payback Period
Months to recover CAC from gross margin on revenue.
Churn Rate
Share of customers or revenue lost in a period.
CLTV/CAC Ratio
Compares lifetime value to acquisition cost.
Cohort Analysis
Track user behavior over time by cohort.
Conversion Rate
Share of visitors who complete a target action.
Cost Per Acquisition (CPA)
Ad spend divided by attributed conversions.
Customer Acquisition Cost (CAC)
Average cost to acquire one new customer.
Customer Lifetime Value (CLTV)
Total revenue expected from a customer over the relationship.
DAU/MAU Stickiness
Share of monthly users active daily.
Gross Margin
Revenue minus COGS as a percentage of revenue.
Monthly Recurring Revenue (MRR)
Predictable subscription revenue recognized within a month.
Net Margin
Net income as a percentage of revenue.
Net Revenue Retention (NRR)
Revenue kept and expanded from existing customers.
Retention Rate
Share of users who remain active between periods.
Return on Investment (ROI)
Gain relative to cost expressed as a percentage.
Runway
Months until cash reaches zero at current burn.
Time to First Value (TTFV)
Time for new users to reach their first meaningful outcome.