Clear definitions for every metric that matters. Includes formulas, benchmarks, and free calculators for each term.
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a product or service on a scale of 0–10.
NPS = % Promoters − % Detractors
Customer Satisfaction Score (CSAT) measures how satisfied customers are with a specific interaction, product, or service.
CSAT = (Positive responses ÷ Total responses) × 100
Customer Effort Score (CES) measures how easy it is for customers to complete an interaction with a product or support team.
CES = Average of all responses on a 1–7 scale
Churn rate is the percentage of customers who cancel or stop using a product during a given time period.
Churn Rate = (Customers lost ÷ Customers at start) × 100
Monthly Recurring Revenue (MRR) is the predictable revenue a SaaS business generates each month from active subscriptions.
MRR = Number of active customers × Average revenue per customer per month
Customer Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer over the entire relationship.
LTV = Average Revenue Per Customer × Average Customer Lifespan
Customer Acquisition Cost (CAC) is the total cost to acquire a single new customer, including sales, marketing, and related overhead.
CAC = Total sales & marketing spend ÷ Number of new customers acquired
Customer retention rate is the percentage of existing customers a business keeps over a given period.
Retention Rate = ((End customers − New customers) ÷ Start customers) × 100
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