Month & Annual Recurring Revenue:
Monthly Recurring Revenue (MRR) is the recurring total revenue generated from all the active subscriptions in a particular month. Annual Recurring Revenue is the annualized form of MRR.
​
​

CLV:
Total revenue expected from each subscriber until the subscription is terminated.
​
​

CAC:
Total amount spent on acquire a new customer.
​
​

ARPU:
Average Revenue per User = MRR/Total Number of Users.
​
​

CAC Payback Period:
CAC/MRR * Gross Margin
​
​

CLV/CAC ratio:
The ratio helps compare the cost spent on customer acquisition against the value they generate throughout their lifetime for the business.