FP&A Glossary
A complete library of terms, metrics, and calculations for your business.
All Metrics
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.
Burn Multiple
Burn multiple measures how much money a company spends to generate new revenue.
Burn Productivity
Burn Productivity measures the change in gross profit compared to total operating expenses generated over the prior six months.
Burn Rate
Burn rate is defined as the negative free cash flow (FCF) during the month.
CAC Payback
Customer Acquisition Cost (CAC) payback is the number of months it will take to recover the cost of acquiring a customer.
Cash Runway
Cash runway is the number of months until cash runs out.
Contraction MRR
Contraction MRR is the total reduction in MRR for a given month through downgrades or churns.
Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) refers to the direct costs associated with producing your product or service.
Cost Per Lead (CPL)
Your cost per lead is the amount of money you spend to acquire a new lead.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is how much money you spend in sales and marketing to acquire one new customer.