Glossary • 22 terms
SaaS Metrics Encyclopedia
Short, practical definitions with formulas and examples. Each term links to tools and related concepts.
A
- Activation RateShare of new users reaching a defined first value.
- Annual Recurring Revenue (ARR)ARR is 12×MRR or contracted annual subscription value. Learn the formula, ARR vs MRR, examples, and how product teams prioritize feedback using ARR today.
- Average Revenue Per User (ARPU)Average monthly revenue per customer or account.
B
C
- CAC Payback PeriodMonths to recover CAC from gross margin on revenue.
- Churn RateShare of customers or revenue lost in a period.
- CLTV/CAC RatioCompares lifetime value to acquisition cost.
- Cohort AnalysisTrack user behavior over time by cohort.
- Conversion RateShare 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.