FP&A Glossary
A complete library of terms, metrics, and calculations for your business.
Revenue
Annual Recurring Revenue (ARR)
Annual recurring revenue (ARR) is the amount of predictable revenue your business earns in a year from customers.
Average Revenue Per Account
Average revenue per account (ARPA) is the average monthly recurring revenue (MRR) per customer.
Average Revenue Per User (ARPU)
ARPU is the average monthly recurring revenue (MRR) per user.
Cash Earnings
Cash earnings are the net amount of money that a business generates from operations when looking at just cash activity.
Customer Lifetime Value (CLV)
Customer lifetime value (LTV) is how much revenue one customer generates for your business over time.
LTV:CAC Ratio
LTV:CAC ratio compares how much a customer spends with you over their lifetime to how much it costs to acquire them.
Monthly Recurring Revenue (MRR)
MRR is the amount of predictable revenue your business earns each month from customers.
Net Income
Net income is the profit or loss your business incurred after deducting all expenses from your revenue.
New MRR
New MRR is the amount of MRR gained from new customers.
Revenue Per Employee
Revenue per employee calculates the amount of revenue that each employee earns for the business.
Revenue Run Rate
Revenue run rate is a projection of your annual revenue based on revenue generated in a previous period.
Total Revenue
Total revenue is your total revenue from recurring and non-recurring revenue streams.