Guides

24 practical explanations of the metrics behind our calculators.

Advertising

CPM vs CPC vs CPA: Which Metric Should You Use?

CPM, CPC and CPA answer different questions about campaign efficiency.

Advertising

ROAS vs ROI: Understanding the Difference

ROAS and ROI both compare output with spending, but they are designed for different scopes.

Advertising

How to Calculate Break-even ROAS

Break-even ROAS helps connect advertising performance with gross margin.

Marketing

The Essential Marketing Funnel Metrics

Different stages of a funnel require different measurements.

Marketing

How to Calculate Customer Acquisition Cost

CAC measures how much sales and marketing spending is required to acquire a new customer.

Marketing

LTV:CAC Ratio Explained

LTV:CAC compares estimated customer value with the cost to acquire that customer.

Marketing

Retention Rate vs Churn Rate

Retention and churn describe opposite sides of customer continuity.

Marketing

Email Open Rate and CTR Explained

Email engagement metrics help separate delivery, attention and action.

Publishing

What Is Page RPM?

Page RPM is a normalized estimate of publisher revenue per 1,000 pageviews.

Publishing

RPM vs CPM for Publishers

CPM and RPM are related but describe different perspectives.

Publishing

Ad Fill Rate Explained

Fill rate measures the percentage of eligible ad requests that return an ad.

Publishing

Ad Viewability Explained

Viewability indicates whether measurable ad impressions met viewable criteria used by the measurement system.

Business

Profit Margin vs Markup

Margin and markup use different denominators, so they should not be treated as the same percentage.

Business

How Break-even Analysis Works

Break-even analysis estimates how much you must sell before contribution covers fixed costs.

Business

CAGR Explained

CAGR summarizes multi-year growth as a constant annualized rate.

Business

Operating Margin Explained

Operating margin measures operating income as a percentage of revenue.

E-commerce

Average Order Value Explained

AOV measures average revenue per completed order.

E-commerce

How to Calculate E-commerce Profit Per Order

Product profit requires more than subtracting product cost from price.

E-commerce

Cart Abandonment Rate Explained

Cart abandonment measures carts created that do not turn into completed orders.

Finance

How Compound Interest Works

Compound interest earns returns on both principal and previously accumulated returns.

Finance

How Monthly Loan Payments Are Calculated

Fixed-payment loans spread principal and interest across equal scheduled payments.

Finance

How Inflation Changes Future Costs

Inflation reduces purchasing power by increasing the nominal cost of goods and services over time.

Math

Percentage Change vs Percentage Points

Percentage change and percentage-point change are different measurements.

Math

How Ratios and Proportions Work

Ratios compare quantities and proportions state that two ratios are equivalent.