Startup Glossary
A complete library of terms, metrics, and calculations for your startup.
All Metrics
Leads
A lead is a person who has a potential interest in your product or service.
Operating Profit
Operating profit is a company’s earnings after deducting operating expenses and Cost of Goods Sold (COGS). It’s also known as EBIT (earnings before interest and taxes).
Gross Profit
Gross profit is a company’s earnings after deducting the Cost of Goods Sold (COGS).
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.
Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) refers to the direct costs associated with producing your product or service.
Expenses
Expenses are the costs incurred by a company during typical business activities and operations.
Customer Lifetime Value (CLV)
Customer lifetime value (LTV) is how much revenue one customer generates for your business over time.
Lead Conversion Rate
Lead conversion rate is the percentage of leads that will convert into paying customers.
Cost Per Lead (CPL)
Your cost per lead is the amount of money you spend to acquire a new lead.
Average Revenue Per Account
Average revenue per account (ARPA) is the average monthly recurring revenue (MRR) per customer.
Gross Margin
Gross margin is your company’s net sales revenue minus your Cost of Goods Sold (COGS).
New MRR
New MRR is the amount of MRR gained from new customers.