metric category
Financial & Unit Economics KPIs
Financial and unit economics metrics translate operational performance into the economic indicators that determine business viability, investment attractiveness, and long-term profitability. From gross margin and EBITDA to CAC payback period and free cash flow, these metrics answer the fundamental question of whether growth is building or destroying enterprise value.
all definitions
All Financial & Unit Economics Metrics Definitions (10 KPIs)
Each entry includes formula, platforms, causal drivers, benchmarks, and Q&A.
Gross Margin
GM%
Gross Margin measures the percentage of revenue remaining after subtracting the direct cost of delivering the product or service (Cost of Goods Sold).
CFO
CEO
CMO
VP Engineering
Operating Margin
Operating Margin measures the percentage of revenue remaining after subtracting all operating expenses including COGS, sales and marketing, R&D, and G&A, but before interest and taxes (EBIT).
CFO
CEO
COO
EBITDA
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a widely used measure of core operating profitability that strips out the effects of financing decisions, tax environments, and non-cash accounting charges.
CFO
CEO
COO
Burn Rate
Burn Rate measures the rate at which a company is spending its cash reserves, typically expressed as a monthly net cash outflow.
CFO
CEO
COO
CAC Payback Period
CAC Payback Period measures the number of months required for a newly acquired customer to generate enough gross profit to recover the cost of acquiring them.
CFO
CMO
CEO
VP Sales
Revenue Per Employee
RPE
Revenue Per Employee (RPE) measures total annualized revenue divided by the total number of full-time equivalent employees.
CFO
CEO
COO
Cost of Goods Sold
COGS
Cost of Goods Sold (COGS) represents the direct costs attributable to delivering a product or service to customers, sitting directly below revenue on the income statement to calculate gross profit.
CFO
CEO
VP Engineering
COO
Free Cash Flow
FCF
Free Cash Flow (FCF) measures the cash a company generates from operations after deducting capital expenditures required to maintain or expand its asset base.
CFO
CEO
COO
Average Order Value
AOV
Average Order Value (AOV) measures the average dollar amount spent per transaction or order, most commonly used in e-commerce and transactional businesses.
CMO
CFO
VP Marketing
COO
Repeat Purchase Rate
Repeat Purchase Rate measures the percentage of customers who make more than one purchase within a defined time period, indicating brand loyalty and product satisfaction in transactional or e-commerce businesses.
CMO
CFO
VP Marketing
COO
ownership
Roles that own these metrics
See the full KPI guide for each role that works with Financial & Unit Economics Metrics.
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