Financial terms glossary

Explore key billing, revenue recognition, and niche finance terms in one place.

Dynamic Value-Based Payment

Learn what Dynamic Value-Based Payment is, how it works, how finance teams use it to align pricing with customer outcomes, and what metrics determine whether value-based payment models are commercially sustainable.

Predictive Willingness-to-Pay Model

Learn what a Predictive Willingness-to-Pay Model is, how it works, how finance and revenue teams use it to set prices with confidence, and what metrics determine whether WTP predictions are accurate.

AI Model-Driven Pricing

Learn what AI Model-Driven Pricing is, how it works, how finance teams use it to run pricing experiments, and what metrics determine whether model-driven pricing tests are working.

Credit Predictability Index

Learn what the Credit Predictability Index is, how to calculate it, why it matters for credit-based SaaS pricing, and how finance teams use it to forecast revenue and manage consumption risk.

Credit Burn Velocity

Learn what Credit Burn Velocity is, how to calculate it, why it matters for credit-based SaaS pricing, and how finance teams use it to track usage health and forecast revenue.

Credit Breakage

Learn what credit breakage is in SaaS, how unused prepaid credits affect revenue recognition under ASC 606, and how finance teams estimate, document, and manage breakage as usage-based billing models scale.

AI Monetization Ratio

Learn what the AI Monetization Ratio is, how to calculate it accurately, and how SaaS finance teams use it to measure AI revenue contribution, protect margin discipline, and build a credible AI growth narrative.

AI Revenue Forecast Models

Learn what AI Revenue Forecast Models are, how they improve ARR predictability for SaaS finance teams, and how to evaluate, implement, and apply them alongside key revenue metrics.

AI Credit Bundle

Learn what an AI Credit Bundle is, how it structures AI feature pricing for SaaS companies, and how finance teams use it to protect gross margin, forecast consumption revenue, and build scalable AI monetisation models.

AI ARR

Learn what AI ARR (Artificial Intelligence Annual Recurring Revenue) is, how it differs from traditional ARR, and how finance teams can calculate, track, and segment AI-driven recurring revenue.

Committed ARR

Learn what Committed ARR (CARR) is, how it differs from ARR and AI ARR, and why finance teams track it to understand contractually secured revenue.

Expansion Mix Ratio

Learn what Expansion Mix Ratio is, how it shifts as a SaaS business scales, and why finance teams and investors use it to evaluate growth quality and capital efficiency.

AI Attach Rate

Learn what AI Attach Rate is, how it is calculated, and why product, GTM, and finance teams are tracking it as a leading indicator of AI monetization health.

Usage ARR

UARR measures the annualized value of predictable usage revenue. Here is how to calculate it, when to use it, and how it differs from ARR.

ARR per FTE

Learn what ARR per FTE is, how it measures workforce productivity in SaaS, and what the AI-adjusted lens means for finance teams evaluating operational efficiency today.

Revenue Impact Window

Learn what the Revenue Impact Window is, how pricing changes influence SaaS revenue over time, and why finance teams use it to evaluate the real impact of pricing decisions.

Surge Interaction Pricing

Learn what Surge Interaction Pricing is, why peak AI agent interaction volumes create a distinct cost problem, and how finance teams should account for it in revenue and margin planning.

Pricing Experimentation Operating System

Learn what a Pricing Experimentation Operating System is, what it comprises, and why finance teams must treat it as core revenue infrastructure, not just a GTM initiative.

Compute-Adjusted Gross Margin

Learn what Compute-Adjusted Gross Margin is, why AI inference costs require a separate margin lens, and how finance teams use it to evaluate the unit economics of AI-powered products.

AI Adoption Curve Pricing

Learn what AI Adoption Curve Pricing is, how pricing tiers are designed to move with customer maturity, and why finance teams need to understand it to model AI revenue accurately.