A/B Testing
Comparing two versions of a page, email, or feature to determine which performs better. Statistical significance typically requires at least 100 conversions per variant to draw reliable conclusions.
→ Try the calculatorGlossary
Business Glossary, Finance, Marketing & SaaS Terms Explained
A comprehensive glossary of business, finance, marketing, and SaaS terms explained in plain language. From A/B Testing to Viral Coefficient, find clear definitions, formulas, and examples.
A business glossary defines the KPIs, ratios, and metrics that drive every financial and marketing decision. CalcStack's glossary covers 100+ terms across finance, SaaS, marketing, and sales, each with a plain-language definition, formula where applicable, and a link to an interactive calculator to compute it for your own numbers.
Last updated: April 2026
Every glossary term links to a free interactive calculator where you can apply the formula to your own numbers. Understanding a metric is the first step, calculating it for your business is what drives action.
We have found that visitors who arrive at a glossary term and then use the linked calculator are among the most qualified leads, they are actively learning a metric because they need it for a real business decision.
| Category | Value |
|---|---|
| Below 1:1 (losing money) | < 1:1 |
| 3:1 (healthy target) | 3:1 |
| Above 5:1 (underinvesting) | > 5:1 |
Source: Bessemer Venture Partners SaaS benchmarks, 2026Lifetime value to customer acquisition cost. See the LTV:CAC Ratio term below.
Annual Contract Value (ACV)
The average annual revenue per customer contract. Calculated by dividing total contract value by the number of years. ACV helps compare customers on different contract lengths and is a key metric for SaaS sales teams.
→ Try the calculatorAnnual Recurring Revenue (ARR)
The total predictable revenue your subscription business generates in a year. Calculated as MRR × 12, ARR is the standard metric investors use to benchmark SaaS companies above $1M in revenue.
ARR = MRR × 12
API Webhook
An automated HTTP request sent from one system to another when a specific event occurs. CalcStack fires webhooks when leads are captured, sending the data to CRMs, Slack, or custom endpoints in real time.
→ Try the calculatorAttribution Model
The methodology used to assign credit for conversions across marketing touchpoints. Different models (first-touch, last-touch, linear, time-decay) tell different stories about which channels drive results.
→ Try the calculatorBottom of Funnel (BOFU)
The decision stage where prospects are ready to buy. BOFU content removes final objections, pricing pages, demos, ROI calculators, and free trials convert prospects into customers at this stage.
→ Try the calculatorBounce Rate
The percentage of visitors who land on a page and leave without taking any further action or visiting another page. A high bounce rate often signals that the landing page isn't matching visitor expectations or that the user experience needs improvement.
→ Try the calculatorBreak-Even Point
The moment your total revenue equals your total costs, you're no longer losing money but haven't started profiting yet. Knowing your break-even point tells you exactly how many units you need to sell or how much revenue you need to cover all fixed and variable costs.
Break-Even = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)
Burn Multiple
How much a company spends to generate each dollar of new ARR. Calculated as net burn divided by net new ARR. A burn multiple under 1.5x is considered efficient; above 2x signals unsustainable spending.
→ Try the calculatorBurn Rate
How fast your startup spends cash each month. Gross burn is total monthly expenses; net burn subtracts revenue. It's the number that determines how many months of runway you have before the money runs out.
Net Burn Rate = Total Monthly Expenses − Monthly Revenue
Buyer Signal
An action that suggests a prospect is ready to purchase. Strong signals include visiting pricing pages, requesting demos, and entering high-value numbers into ROI calculators. Tracking buyer signals helps sales teams prioritize outreach.
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The total cost of acquiring a single new customer, including marketing spend, sales salaries, tools, and overhead. If you spend $50,000 on sales and marketing in a month and acquire 100 customers, your CAC is $500.
CAC = Total Sales & Marketing Spend ÷ New Customers Acquired
Call to Action (CTA)
A prompt that encourages visitors to take a specific action such as signing up, downloading, or purchasing. Effective CTAs use action-oriented language and create urgency or curiosity.
→ Try the calculatorCarpet Cleaning Cost
The typical pricing model for residential carpet cleaning, usually charged per room or per square foot. Per-room pricing is simpler for homeowners to understand, while per-square-foot pricing is more accurate for larger or irregularly shaped spaces.
→ Try the calculatorCart Abandonment Rate
The percentage of online shoppers who add items to their cart but leave without completing the purchase. The average cart abandonment rate across industries is around 70%, making it one of the biggest revenue leaks in ecommerce.
Abandonment Rate = (Carts Created − Purchases Completed) ÷ Carts Created × 100
Churn Rate
The percentage of customers (or revenue) you lose over a given period. A 5% monthly churn rate means you lose 5 out of every 100 customers each month, which compounds to losing nearly half your customer base annually.
Churn Rate = Customers Lost ÷ Customers at Start of Period × 100
Click-Through Rate (CTR)
The percentage of people who click on a link, ad, or call-to-action after seeing it. Average Google Ads CTR is 3-5% for search and 0.5-1% for display. It's the primary measure of how compelling your messaging or creative is.
CTR = Clicks ÷ Impressions × 100
Compound Interest
Interest calculated on both the initial principal and the accumulated interest from previous periods, essentially, earning interest on your interest. It's the force that makes long-term investments grow exponentially rather than linearly.
A = P × (1 + r/n)^(n×t)
Contraction Revenue
Revenue lost from existing customers who downgrade to cheaper plans without fully cancelling. Tracked separately from churn to understand whether customers are finding less value over time.
→ Try the calculatorContribution Margin
The revenue remaining after subtracting variable costs, expressed as a percentage or dollar amount. It tells you how much each unit sold contributes toward covering fixed costs and generating profit. A product selling for $100 with $40 in variable costs has a $60 contribution margin.
Contribution Margin = Revenue − Variable Costs
Conversion Rate
The percentage of visitors or prospects who complete a desired action, purchasing, signing up, requesting a demo, or subscribing. A 3% conversion rate means 3 out of every 100 visitors take the action you're measuring.
Conversion Rate = Conversions ÷ Total Visitors × 100
Conversion Rate Optimization (CRO)
The systematic process of increasing the percentage of website visitors who take a desired action. Typical methods include A/B testing, user research, and funnel analysis. Even small CRO improvements compound significantly at scale.
→ Try the calculatorCost Per Acquisition (CPA)
The total cost of acquiring one paying customer, including all marketing and sales expenses. CPA is broader than CPC because it accounts for the entire journey from click to conversion.
CPA = Total Marketing Spend ÷ Number of Acquisitions
Cost Per Click (CPC)
The amount you pay each time someone clicks on your ad. CPC varies widely by industry and platform, from a few cents for display ads to $50+ for competitive legal or financial keywords. It's the building block of most paid advertising budgets.
→ Try the calculatorCost Per Lead (CPL)
How much you spend to generate a single qualified lead. Unlike CAC, CPL only measures the top of the funnel, the cost to get someone interested, not the cost to convert them into a paying customer.
CPL = Total Marketing Spend ÷ Number of Leads Generated
CRM Integration
Connecting a lead generation tool with a Customer Relationship Management system so leads flow automatically. CalcStack integrates with HubSpot, Salesforce, Mailchimp, and any system that accepts webhooks.
→ Try the calculatorCurb Appeal
The visual attractiveness of a property as seen from the street, directly impacting its perceived value and sale price. Well-maintained landscaping, a clean exterior, and an inviting entrance can add thousands to a home's market value.
→ Try the calculatorCustomer Health Score
A composite metric combining usage frequency, feature adoption, support ticket volume, and NPS to predict whether a customer will renew or churn. Used by customer success teams to prioritize outreach to at-risk accounts.
→ Try the calculatorCustomer Lifetime Value (LTV)
The total revenue a customer generates over their entire relationship with your business. If the average customer pays $100/month and stays for 24 months, their LTV is $2,400. It's essential for understanding how much you can afford to spend on acquisition.
LTV = Average Revenue per Customer × Gross Margin × Average Customer Lifespan
Debt-to-Equity Ratio
A measure of a company's financial leverage, calculated by dividing total debt by total shareholder equity. A ratio of 2:1 means the company uses twice as much debt as equity to finance its assets. Higher ratios indicate greater financial risk but can also amplify returns.
D/E Ratio = Total Liabilities ÷ Total Shareholders' Equity
Dilution
The reduction in a founder's ownership percentage when new shares are issued to investors or employees. Raising $1M on a $4M pre-money valuation dilutes existing shareholders by 20%. Dilution is normal and expected, the goal is to make a smaller slice of a much larger pie.
→ Try the calculatorEmail Gating
Requiring visitors to enter their email address before accessing content such as PDF reports, detailed results, or premium resources. Used to convert anonymous visitors into identifiable leads while providing genuine value in exchange.
Embed Code
A snippet of HTML or JavaScript that displays third-party content inside a webpage. CalcStack embed codes use iFrames to render interactive calculators on any website without affecting the host site's performance or styling.
→ Try the calculatorEnergy Payback Period
The time it takes for a solar panel system or energy efficiency investment to pay for itself through reduced utility bills. Most residential solar installations reach payback in 6-10 years, after which the energy savings are essentially free.
→ Try the calculatorEquity
The portion of a property's value that the owner actually owns outright, calculated as the property's current market value minus the outstanding mortgage balance. As you pay down your mortgage and property values rise, your equity grows.
→ Try the calculatorEvent ROI
The return on investment from hosting, sponsoring, or attending an event, measured by comparing the revenue or leads generated against the total cost of participation. A positive event ROI means the event generated more value than it cost to run.
→ Try the calculatorExpansion Revenue
Additional revenue generated from existing customers through upsells, cross-sells, and add-ons. Companies with strong expansion revenue can grow even with moderate churn rates. It is a key component of net revenue retention.
→ Try the calculatorFirst-Touch Attribution
Giving 100% of conversion credit to the first marketing touchpoint that introduced the prospect to your brand. Favors top-of-funnel channels like SEO and social media but ignores the influence of later touchpoints.
→ Try the calculatorFixed Costs
Business expenses that remain constant regardless of how much you produce or sell, such as rent, insurance premiums, and salaried staff. Understanding your fixed costs is essential for calculating your break-even point and setting prices.
→ Try the calculatorForm Abandonment Rate
The percentage of users who start filling out a form but leave before completing it. Average form abandonment is 67%. Reducing form fields from 4 to 3 can increase conversions by 50%.
→ Try the calculatorGated Content
Content that requires users to provide information (usually email) before accessing it. Works best when the perceived value of the content exceeds the friction of the form. Ebooks, reports, and detailed calculator results are common gated assets.
Gross Margin
The percentage of revenue remaining after subtracting the cost of goods sold (COGS). A SaaS company with $1M in revenue and $200K in hosting and support costs has an 80% gross margin. Higher gross margins mean more money available for growth, R&D, and operations.
Gross Margin = (Revenue − COGS) ÷ Revenue × 100
Gross Revenue Retention (GRR)
Revenue retained from existing customers excluding any expansion revenue. GRR only accounts for downgrades and cancellations. Healthy B2B SaaS targets 90%+ GRR as a floor for sustainable growth.
→ Try the calculatorHome Affordability
How much house you can realistically afford, based on your income, existing debts, down payment, and current interest rates. Most lenders use the 28/36 rule, housing costs shouldn't exceed 28% of gross income, and total debts shouldn't exceed 36%.
→ Try the calculatoriFrame
An HTML element that embeds another webpage within the current page. Used by CalcStack to render calculators on client websites. iFrames are sandboxed, meaning they cannot access the host page's data or styling.
→ Try the calculatorImpression Share
The percentage of total available impressions your ads received. Low impression share means competitors are winning more of the available ad inventory, often due to budget limitations or lower quality scores.
→ Try the calculatorIntent Data
Signals that indicate a prospect is actively researching or considering a purchase. First-party intent data includes website visits and content engagement. Third-party intent data comes from external research behavior across the web.
→ Try the calculatorInteractive Content
Digital content that requires active user participation, calculators, quizzes, assessments, and configurators. Converts 30-50% of visitors compared to 2-3% for static forms because users receive personalized value before being asked for contact details.
→ Try the calculatorInvoice Payment Terms
The agreed timeframe within which an invoice must be paid, commonly expressed as Net 30, Net 60, or Net 90 days. Shorter payment terms improve your cash flow but may be less attractive to buyers; longer terms can win deals but increase the risk of late payment.
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A standalone web page designed for a specific marketing campaign or offer, optimized to convert visitors into leads or customers. Effective landing pages have a single clear call to action and minimal navigation distractions.
→ Try the calculatorLandscaping ROI
The return on investment for landscaping and outdoor improvements. Well-planned landscaping projects typically deliver 100-200% ROI through increased property value, with front-yard curb appeal projects offering the highest returns.
→ Try the calculatorLast-Touch Attribution
Giving 100% of conversion credit to the final marketing touchpoint before conversion. Favors bottom-of-funnel channels like paid search and direct visits but undervalues the awareness-building work of earlier touchpoints.
→ Try the calculatorLead Capture
Collecting contact information from website visitors, typically through forms, gated content, or interactive tools. Effective lead capture provides value before requesting information, resulting in higher conversion rates and better-quality leads.
→ Try the calculatorLead Magnet
A valuable resource offered in exchange for contact information. Examples include ebooks, templates, calculators, and reports. The best lead magnets solve an immediate, specific problem rather than offering generic content.
Lead Qualification
The process of evaluating whether a lead matches your ideal customer profile and is likely to purchase. Frameworks like BANT (Budget, Authority, Need, Timeline) and MEDDIC help standardize qualification across sales teams.
→ Try the calculatorLead Scoring
Assigning a numerical value to leads based on their behavior and demographic data to prioritize sales follow-up. Common scoring factors include company size, budget, engagement level, and fit with ideal customer profile.
→ Try the calculatorLoan-to-Value Ratio (LTV)
The ratio of a mortgage amount to the appraised value of the property, expressed as a percentage. An 80% LTV means you're borrowing 80% of the property's value. Lower LTV ratios typically qualify for better interest rates and avoid the need for mortgage insurance.
→ Try the calculatorLTV:CAC Ratio
The relationship between customer lifetime value and acquisition cost. A 3:1 ratio, earning $3 for every $1 spent on acquisition, is considered healthy. Below 1:1 means you're losing money on every customer; above 5:1 may mean you're underinvesting in growth.
LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost
Magic Number (SaaS)
Measures sales efficiency by dividing the change in ARR by the prior quarter's sales and marketing spend. A magic number above 0.75 suggests it is efficient to invest more in sales and marketing. Below 0.5 signals inefficiency.
→ Try the calculatorMarketing-Qualified Lead (MQL)
A lead that has shown interest through marketing engagement, downloading content, attending webinars, or using interactive tools, but has not yet been evaluated by sales for purchase readiness.
→ Try the calculatorMarkup
The percentage added to the cost of a product to determine its selling price. A $50 product with a 100% markup sells for $100. Markup is always higher than the corresponding margin, a common source of confusion in pricing.
→ Try the calculatorMicro-Conversion
A small action that indicates progress toward a primary conversion goal. Examples include viewing a pricing page, downloading a PDF, or completing a calculator. Tracking micro-conversions reveals where prospects drop off in the funnel.
→ Try the calculatorMiddle of Funnel (MOFU)
The consideration stage where prospects evaluate solutions. MOFU content demonstrates value, case studies, comparison pages, and detailed calculators help prospects compare options and narrow their shortlist.
→ Try the calculatorMonthly Recurring Revenue (MRR)
The predictable, normalized revenue your subscription business earns each month. MRR is broken into four components: new (from first-time customers), expansion (from upgrades), churned (from cancellations), and contraction (from downgrades).
MRR = Number of Subscribers × Average Revenue per Subscriber
Move-Out Cleaning
A deep cleaning service performed when vacating a rental property, typically required to meet lease terms and secure the return of a tenancy deposit. It covers areas like ovens, carpets, windows, and bathrooms to a professional standard.
→ Try the calculatorMulti-Touch Attribution
Distributing conversion credit across all marketing touchpoints a customer interacted with before converting. More accurate than single-touch models but more complex to implement and requires robust tracking infrastructure.
→ Try the calculatorNet Margin
The percentage of revenue that becomes actual profit after all expenses, COGS, operations, salaries, taxes, interest, and depreciation. A 10% net margin means $0.10 of every revenue dollar is profit. It's the bottom-line measure of business profitability.
→ Try the calculatorNet Promoter Score (NPS)
A customer satisfaction metric based on one question: 'How likely are you to recommend us?' Respondents are grouped into Promoters (9-10), Passives (7-8), and Detractors (0-6). NPS = % Promoters − % Detractors, ranging from −100 to +100.
NPS = % Promoters − % Detractors
Net Revenue Retention (NRR)
The percentage of recurring revenue retained from existing customers over a period, including expansion and contraction. An NRR above 100% means your existing customers are generating more revenue over time, even without acquiring new ones. Best-in-class SaaS companies achieve 120%+.
NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100
Net Worth
Your total assets minus your total liabilities, the single most fundamental measure of personal financial health. It includes everything you own (property, savings, investments) minus everything you owe (mortgages, loans, credit card debt).
Operating Expenses (OpEx)
The day-to-day costs of running your business that aren't directly tied to producing goods or services. This includes rent, salaries, software subscriptions, marketing, and administrative costs. Keeping OpEx efficient relative to revenue is critical for profitability.
Payback Period
The time required for a customer's revenue to cover the cost of acquiring them. Calculated as CAC divided by (ARPU × gross margin). Healthy SaaS companies target payback under 12 months to maintain healthy cash flow.
Payback Period = CAC ÷ (Monthly Revenue per Customer × Gross Margin)
Product-Qualified Lead (PQL)
A lead who has experienced product value, typically through a free trial or freemium plan. PQLs convert at 3-5x higher rates than marketing-qualified leads because they have firsthand experience with the product.
→ Try the calculatorProfit Margin
The percentage of revenue that remains as profit after costs are deducted. There are two main types: gross margin (revenue minus COGS) and net margin (revenue minus all expenses). It's the clearest indicator of how efficiently your business converts revenue into profit.
Net Profit Margin = (Revenue − All Expenses) ÷ Revenue × 100
Quality Score
Google's rating of the quality and relevance of your keywords, ads, and landing pages on a 1-10 scale. Higher quality scores lead to lower CPCs and better ad positions. Improving quality score is one of the most cost-effective ways to optimize ad spend.
→ Try the calculatorQuick Ratio (SaaS)
A measure of growth efficiency calculated as (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR). A Quick Ratio above 4 is excellent, meaning for every dollar of MRR lost, you add four dollars. Below 1 means you're shrinking.
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR)
ROAS (Return on Ad Spend)
Revenue generated per dollar spent on advertising. Calculated as ad revenue divided by ad cost. A ROAS of 4:1 means every $1 in ad spend generates $4 in revenue. Unlike ROI, ROAS only considers ad spend, it ignores COGS and overhead.
ROAS = Revenue from Ads ÷ Ad Spend
ROI (Return on Investment)
The percentage gain or loss on an investment relative to its total cost. ROI accounts for all costs, not just marketing, making it the most comprehensive measure of investment profitability. A 50% ROI means you earned $1.50 for every $1 invested.
ROI = (Net Profit ÷ Cost of Investment) × 100
Rental Yield
The annual rental income from a property expressed as a percentage of its purchase price or current market value. A property worth $200,000 generating $12,000 per year in rent has a 6% gross rental yield. It's the key metric for comparing rental property investment opportunities.
Gross Yield = Annual Rental Income ÷ Property Value × 100
Revenue Per Employee
Total revenue divided by the number of employees. It measures organizational efficiency and is commonly used to benchmark companies within an industry. Top SaaS companies generate $200K-$500K+ in revenue per employee.
→ Try the calculatorRule of 40
A SaaS benchmark where a company's revenue growth rate plus profit margin should exceed 40%. For example, a company growing at 30% with 15% margins scores 45, above the threshold. Used by investors to evaluate SaaS health and balance between growth and profitability.
→ Try the calculatorRunway
How many months your startup can operate before running out of cash, calculated as cash on hand divided by net burn rate. With $1M in the bank and $100K/month net burn, you have 10 months of runway. Most advisors recommend maintaining at least 12-18 months.
Runway (months) = Cash Balance ÷ Net Burn Rate
SaaS Metrics
The set of key performance indicators specific to subscription businesses, including MRR, ARR, churn rate, LTV, CAC, NRR, and Quick Ratio. Together, they paint a complete picture of a SaaS company's health, growth trajectory, and unit economics.
→ Try the calculatorSaaS Quick Ratio
Measures growth efficiency by dividing new MRR (new + expansion) by lost MRR (churn + contraction). A Quick Ratio above 4 indicates healthy, efficient growth. Below 2 suggests growth is being undermined by churn.
→ Try the calculatorSales Commission
A percentage of revenue or profit paid to salespeople as compensation for closing deals. Typical SaaS commission rates range from 5-15% of the deal value, with accelerators that increase the rate once quotas are exceeded.
→ Try the calculatorSales Funnel
The journey a prospect takes from first awareness of your product to becoming a paying customer. Typically modeled as awareness, interest, consideration, and decision stages. Each stage requires different content and engagement strategies.
→ Try the calculatorSales-Qualified Lead (SQL)
A lead that the sales team has evaluated and confirmed as a genuine sales opportunity. SQLs have budget, authority, need, and timeline aligned with your product. SQL conversion rates are typically 20-30%.
→ Try the calculatorSolar Payback Period
The time it takes for the energy savings from a solar panel installation to exceed the upfront cost. Factors include system size, local electricity rates, sunlight hours, and available incentives. Most US residential systems pay back in 6-10 years.
→ Try the calculatorReal Estate Transfer Tax
A tax levied by state or local government when purchasing property, calculated as a percentage of the transaction price. Rates vary dramatically by state, from $0 in states like Texas and Alaska to 1-4% in Delaware, New York, and Washington, and are paid at closing.
Transfer Tax = Rate × Sale Price
Take-Home Pay
The amount of your salary that actually lands in your bank account after all deductions, federal and state income tax, FICA (Social Security and Medicare), 401(k) contributions, and health insurance premiums. It's the number that matters most for budgeting your real-world expenses.
→ Try the calculatorTop of Funnel (TOFU)
The awareness stage where prospects first discover your brand. TOFU content educates and attracts, blog posts, social media, and interactive tools work well here to build initial awareness and trust.
→ Try the calculatorTotal Contract Value (TCV)
The total revenue expected from a customer over the entire contract duration including one-time fees. A 3-year contract at $1,000/year with a $500 setup fee has a TCV of $3,500. TCV helps forecast future revenue commitments.
→ Try the calculatorUngated Content
Content freely accessible without any form submission. Used to build trust, attract organic traffic, and establish expertise before asking for contact details. Ungated content often drives more long-term SEO value than gated content.
Unit Economics
The direct revenues and costs associated with a single customer or unit of your product. At its core, unit economics answers one question: do you make more money from a customer than it costs to acquire and serve them? LTV, CAC, and contribution margin are the key components.
→ Try the calculatorVariable Costs
Business expenses that rise and fall in direct proportion to your sales volume, such as raw materials, shipping fees, and sales commissions. Unlike fixed costs, variable costs only occur when you actually produce or sell something.
→ Try the calculatorVenue Hire
The cost of renting a space for an event, typically charged per hour, per half-day, or per day. Pricing varies based on location, capacity, included amenities, and the day of the week, weekend and evening slots usually command a premium.
→ Try the calculatorWhat-If Analysis
Modeling different scenarios to compare potential outcomes. In business, what-if analysis helps decision-makers understand the impact of changing variables like pricing, headcount, or marketing spend before committing resources.
White-Label
Removing the original provider's branding from a product so it appears to be the client's own. In CalcStack, white-labeling means the calculator displays the client's logo and colors with no CalcStack branding visible.
→ Try the calculatorWorking Capital
The difference between a company's current assets (cash, receivables, inventory) and current liabilities (payables, short-term debt). Positive working capital means you can cover your near-term obligations; negative working capital is a warning sign of potential cash flow problems.
Working Capital = Current Assets − Current Liabilities
Average Deal Size
The mean revenue value of closed deals over a given period. Tracking average deal size helps sales teams forecast revenue, set quotas, and identify whether deal values are trending up or down. A declining average deal size may signal discounting pressure or a shift in customer mix.
Average Deal Size = Total Revenue from Closed Deals ÷ Number of Deals
Pipeline Velocity
How quickly deals move through your sales pipeline, measured in revenue per day. It combines deal count, average deal size, win rate, and sales cycle length into a single metric that shows how efficiently your pipeline generates revenue.
Pipeline Velocity = (Deals × Avg Deal Size × Win Rate) ÷ Sales Cycle Days
Cost of Goods Sold (COGS)
The direct costs attributable to producing the goods or services a company sells. For SaaS companies, COGS typically includes hosting, customer support, and payment processing fees. COGS is subtracted from revenue to calculate gross profit and gross margin.
COGS = Opening Inventory + Purchases − Closing Inventory
Day Rate
The fee a freelancer or contractor charges per working day, typically calculated from their target annual income divided by billable working days. A freelancer targeting $60,000/year with 220 billable days would set a day rate of approximately $273.
Day Rate = Target Annual Income ÷ Billable Working Days
Customer Retention Cost (CRC)
The total cost of retaining an existing customer over a period, including customer success salaries, loyalty programs, support tools, and retention campaigns. Comparing CRC to customer lifetime value reveals whether your retention investment is justified.
CRC = Total Retention Spend ÷ Number of Customers Retained
Debt Service Coverage Ratio (DSCR)
A measure of a company's or property's ability to service its debt obligations. A DSCR of 1.25 means the entity generates 25% more income than needed to cover debt payments. Lenders typically require a DSCR of at least 1.2 for commercial loans.
DSCR = Net Operating Income ÷ Total Debt Service
Questions
Frequently Asked Questions
What is the CalcStack Business Glossary?
A comprehensive reference of over 100 business, finance, marketing, and SaaS terms explained in plain language with formulas and real-world examples.
How many terms are included in this glossary?
This glossary includes 105 terms covering SaaS metrics, marketing KPIs, financial ratios, property terminology, and more. New terms are added regularly.
Are formulas included for each term?
Yes, where applicable. Terms like CAC, LTV, churn rate, and break-even point include their exact formulas so you can calculate them yourself.
Can I calculate these metrics with CalcStack?
Most terms link directly to a free interactive calculator where you can enter your own numbers and get instant results, benchmarks, and personalized action plans.