Financial Glossary
Quick Answer: The glossary defines ROI-related terms—CAC, LTV, cap rate, payback, and more—with formulas tied back to investment return and profitability metrics.
Definitions of financial and business metrics commonly used alongside ROI and in investment analysis.
This page provides a structured explanation of financial terms used alongside ROI and investment return analysis, including formulas, examples, limitations, and comparisons with related financial metrics.
When to Use This Calculation
- Looking up definitions while reading calculators
- Aligning vocabulary across teams
- Linking metrics to ROI calculations
Limitations of This Metric
- Definitions are educational, not accounting standards for every firm
- Formulas may omit firm-specific allocations
- Regulatory labels vary by jurisdiction
What Is ROI (Return on Investment)?
Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment relative to its cost. This glossary connects terminology used in profitability metric discussions.
- CAC — Customer Acquisition Cost
- LTV — Lifetime Value
- Cap Rate — Capitalization Rate
- Churn Rate
- Payback Period
- Annualized Return
- Gross Margin
- Net Profit
- EBITDA