Glossary

Short definitions aligning calculator inputs with operator vocabulary—not exhaustive accounting textbooks.

AOV

Average order size: slice revenue divided by order count—with tax/shipping counted the same each month.

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ARR

Often ARR ≈ twelve times MRR shown as a monthly run rate for planning—not the same wording finance uses on official revenue recognition.

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Break-even CPC

The highest cost per click you can afford before a campaign loses money under your guesses for gross profit per order and conversion to purchase.

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Break-even ROAS

The ROAS on attributed revenue needed so ad spend is covered by gross margin dollars—not full office rent.

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CAC

Acquisition spend you assign divided by how many fresh paying customers you credit in that same window.

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CPA

Ad spend divided by your chosen outcome—trial, signup, sale, demo, etc.

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CPM

Cost per one thousand impressions—how you buy or compare reach buys.

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LTV

A simple lifetime earnings sketch from average revenue, margin, and churn—not a prophecy.

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MRR

Monthly recurring revenue: paying subscribers times the recurring monthly revenue you attach to each after any annual-to-monthly split you use.

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ROI

Return compared to everything you counted as investment—often wider than ads alone when people say "full ROI."

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