Startup Glossary

A complete library of terms, metrics, and calculations for your startup.

All Metrics

LTV:CAC ratio compares how much a customer spends with you over their lifetime to how much it costs to acquire them.

Cost of Goods Sold (COGS) refers to the direct costs associated with producing your product or service.

Expenses are the costs incurred by a company during typical business activities and operations.

Customer lifetime value (LTV) is how much revenue one customer generates for your business over time.

Lead conversion rate is the percentage of leads that will convert into paying customers.

Your cost per lead is the amount of money you spend to acquire a new lead.

Average revenue per account (ARPA) is the average monthly recurring revenue (MRR) per customer.

Gross margin is your company’s net sales revenue minus your Cost of Goods Sold (COGS).

New MRR is the amount of MRR gained from new customers.

MRR Churn is the amount of MRR lost due to downgrades or cancellations from your customers in a given period of time.

Burn rate is defined as the negative free cash flow (FCF) during the month.

R&D expenses are all costs associated with the research and development of your product or service.