Break-even.
The point where revenue covers costs. After break-even, additional profit depends on margin and ongoing expenses.
Glossary
Business and finance terms in plain English.
A practical glossary for readers moving through entrepreneurship, investing, macro, real estate, wealth, and decision-making pages.
Terms
Useful definitions for the new guides.
Contribution margin.
The amount left from each sale after variable costs. It helps estimate how many sales are needed to cover fixed costs.
Liquidity.
How easily something can be bought, sold, borrowed, or funded without large friction or price impact.
Discount rate.
A rate used to value future cash flows today. Higher discount rates can reduce the value of long-duration assets.
ETF expense ratio.
The annual fund fee charged by an ETF, usually shown as a percentage of assets.
Opportunity cost.
What you give up by choosing one path instead of another.
Decision journal.
A written record of the reason, evidence, risks, emotions, and review date before a decision is made.
Runway.
How long cash can support a person or business before more income, funding, or cost cuts are needed.
Mortgage stress test.
A check of whether mortgage payments remain manageable if rates rise, income falls, or costs increase.
Customer acquisition cost.
The average cost to win a new customer, including marketing, sales, software, discounts, and time where measurable.
Lifetime value.
An estimate of how much gross profit a customer may produce over the relationship.
Churn.
The rate at which customers cancel, leave, or stop buying over a period.
Gross margin.
Revenue minus direct cost of goods or delivery, shown as a percentage of revenue.
APR.
Annual percentage rate. A yearly borrowing cost measure used for loans, credit cards, and other debt products.
Yield.
Income received from an asset compared with its price, often shown as a percentage.
Bond yield.
The return investors demand from lending to a government or company through bonds.
Equity.
Ownership value. In investing it can mean shares; in property it can mean value minus debt.
REIT.
A listed or private structure that owns income-producing real estate and may distribute rental income.
Volatility.
How much an asset price moves. High volatility can create opportunity, stress, and loss risk.
Market capitalization.
Price multiplied by units or shares outstanding. It is a size measure, not a quality guarantee.
Cash flow.
Money moving in and out of a person, household, asset, or business over time.
Net worth.
Assets minus liabilities. It is a snapshot, not a full measure of safety or income quality.
Definitions are simplified for learning and are not financial, investment, tax, legal, mortgage, or business advice.
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