Finance, Math & Health Glossary
Plain-English definitions for every term used across our calculators and converters - including formulas, worked examples, and links to the relevant tool.
A
Adjusted EBITDA
Adjusted EBITDA is EBITDA restated to exclude non-recurring, non-cash, or one-off items. It represents the normalised operating profitability of a business, stripped of distortions.
Arbeidskorting (Employment Tax Credit)
The arbeidskorting is a Dutch employment tax credit that rewards work income. In 2026 it builds to a maximum of €5,685 at €45,592 gross income, then phases out at 6.51% per euro until it reaches zero at €132,920. It reduces income tax owed directly and is not available to the unemployed or self-employed.
B
Break-Even Point
The break-even point is the level of sales at which total revenue exactly equals total costs - producing neither profit nor loss. It is the minimum volume a business must reach before generating operating profit.
BMI (Body Mass Index)
BMI (Body Mass Index) is a weight-to-height ratio used to classify adults as underweight, normal weight, overweight, or obese. It is the most widely used population-level screening tool for weight status.
Body Composition
Body composition is the proportional breakdown of the body into fat mass and lean mass (muscle, bone, water, organs). It is a more complete health indicator than body weight or BMI alone.
Body Fat Percentage
Body fat percentage is the proportion of total body weight that consists of fat tissue. It is a more accurate health marker than BMI because it distinguishes fat mass from lean mass.
Box 1 Income Tax (Netherlands)
Box 1 is the Dutch income tax category for employment and home ownership income. In 2026 it has three brackets: 35.75% up to €38,883, 37.56% up to €78,426, and 49.50% above. The first bracket rate embeds national social insurance premiums (AOW, ANW, WLZ). Tax credits reduce the final liability.
C
Capital Expenditure (CapEx)
Capital Expenditure (CapEx) is spending on physical assets - property, plant, and equipment - that will be used for more than one year. It appears on the cash flow statement, not the income statement.
CDN (Content Delivery Network)
A CDN is a globally distributed network of servers that delivers files to users from the location nearest to them, reducing load time. On this site, some tools load large third-party libraries (such as Tesseract.js, SheetJS, and PDF.js) from a CDN instead of bundling them.
Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) is the total direct cost of producing the goods or services a company sells. It includes raw materials, direct labour, and manufacturing overhead, but not SG&A or R&D.
CAGR (Compound Annual Growth Rate)
CAGR (Compound Annual Growth Rate) is the annualised rate at which an investment would have grown if it compounded at a steady pace each year. It smooths out year-to-year volatility to give a single comparable growth rate.
Compound Interest
Compound interest is interest calculated on both the original principal and all accumulated interest from prior periods. It causes wealth to grow exponentially over time - and debt to escalate at the same pace if left unpaid.
Contribution Margin
Contribution Margin is revenue minus all variable costs - the amount each sale contributes toward covering fixed costs and then generating profit. It is the foundation of break-even analysis and per-product profitability decisions.
Current Ratio
The current ratio measures a company's ability to pay its short-term obligations using its short-term assets. A ratio above 1.0 means current assets exceed current liabilities; below 1.0 indicates potential liquidity risk.
CPC (Cost Per Click)
CPC (Cost Per Click) is the amount a publisher earns each time a visitor clicks an ad on their website. In Google AdSense, CPC is the net figure after Google's revenue share - approximately 68% of what the advertiser paid per click.
CTR (Click-Through Rate)
CTR (Click-Through Rate) is the percentage of page views that result in an ad click. It is calculated as (total clicks / total impressions) x 100. A CTR of 1-3% is typical for content sites using Google AdSense banner ads.
Cost-of-Living Adjustment (COLA)
A cost-of-living adjustment (COLA) is an automatic salary or benefit increase tied to a price index - usually the Consumer Price Index (CPI) - to preserve purchasing power as prices rise. Social Security applies an annual COLA; many employers issue a COLA separately from merit increases.
D
Depreciation & Amortization (D&A)
Depreciation & Amortization (D&A) is the systematic expensing of tangible assets (depreciation) and intangible assets (amortization) over their useful lives. D&A is a non-cash charge that reduces reported profit without reducing cash.
E
EBIT
EBIT (Earnings Before Interest and Tax) is a company's operating profit - the profit generated from core business operations before financing costs (interest) and government levies (tax) are applied.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures core operating profitability. It is the most widely used metric in business valuation, M&A analysis, and credit assessment.
EBITDA Margin
EBITDA Margin is EBITDA expressed as a percentage of revenue. It measures how much operating profit - before financing, taxes, and non-cash charges - is generated from each dollar of revenue.
EBT (Earnings Before Tax)
EBT (Earnings Before Tax) is pre-tax profit - the income remaining after all operating costs and interest expenses but before income tax is applied. It is the most useful metric for comparing profitability across different tax jurisdictions.
Effective Tax Rate
The Effective Tax Rate is the actual percentage of pre-tax income (EBT) paid in income tax. It differs from the statutory rate because of deductions, credits, loss carry-forwards, and deferred tax items.
Enterprise Value (EV)
Enterprise Value (EV) is the total market value of a company - equity plus net debt. It represents what an acquirer would pay to buy the entire business, including taking on its debt and receiving its cash.
EV/EBITDA
EV/EBITDA is a valuation multiple that compares a company's Enterprise Value to its EBITDA. It answers the question: how many years of current EBITDA would it take to pay for the entire business?
Earnings Per Share (EPS)
Earnings Per Share (EPS) is a company's net income divided by the number of shares outstanding. It converts total profit into a per-share figure that enables comparison across differently-sized companies and forms the denominator of the P/E ratio.
F
Free Cash Flow (FCF)
Free Cash Flow (FCF) is the cash generated by a business after funding its capital expenditure. It is the amount available to pay dividends, repay debt, buy back shares, or reinvest - the truest measure of a company's cash-generating ability.
Fraction
A fraction represents a part of a whole as a ratio of two integers: a numerator (top) and a denominator (bottom). Fractions, decimals, and percentages are three equivalent ways to express the same ratio.
FFMI (Fat-Free Mass Index)
FFMI (Fat-Free Mass Index) is lean body mass divided by height squared - the muscle-equivalent of BMI. It measures muscularity relative to frame size, independent of body fat percentage.
FICA Taxes
FICA (Federal Insurance Contributions Act) taxes are mandatory US payroll taxes that fund Social Security and Medicare. Employees pay 7.65% of wages - 6.2% for Social Security (on wages up to $176,100 in 2025) and 1.45% for Medicare on all wages. Employers pay an equal 7.65% match.
G
Gross Profit
Gross Profit is revenue minus Cost of Goods Sold (COGS). It is the first profitability figure on an income statement and shows how much money is left after paying direct production costs.
Gross Profit Margin
Gross Profit Margin is Gross Profit expressed as a percentage of revenue. It measures pricing power and production efficiency - the percentage of each revenue dollar that survives after paying direct costs.
GST (Goods and Services Tax)
GST (Goods and Services Tax) is the name used in Australia, Canada, India, New Zealand, and Singapore for a tax that works identically to VAT - collected at each stage of production with businesses reclaiming input tax. The math and mechanics are the same; only the name differs.
Gross Pay
Gross pay is the total amount earned before any deductions - income tax, Social Security, Medicare, health insurance premiums, or retirement contributions. It is the figure quoted in salary offers and used to calculate hourly rates.
H
Head of Household (HOH)
Head of Household (HOH) is a US federal tax filing status for unmarried taxpayers who pay more than half the cost of a home for a qualifying person. HOH uses wider tax brackets than single filing and a $22,500 standard deduction in 2025, making it the most advantageous status for eligible single parents and caregivers.
Heffingskorting (Tax Credit)
A heffingskorting is a Dutch tax credit that reduces the income tax owed directly - not the taxable income. The two main credits are the algemene heffingskorting (general credit, max €3,115) and the arbeidskorting (employment credit, max €5,685). Both phase out at higher incomes.
I
Ideal Body Weight (IBW)
Ideal Body Weight (IBW) is a clinical estimate of target weight based on height and sex, derived from the Devine, Robinson, Miller, and Hamwi formulas. It was originally developed for drug dosing, not fitness targets.
Internal Rate of Return (IRR)
The Internal Rate of Return (IRR) is the discount rate at which the net present value of all cash flows from an investment equals zero. It is the implied annual return of a project - if IRR exceeds your hurdle rate, the investment creates value.
K
Knot (kn)
A knot is a unit of speed equal to one nautical mile per hour - exactly 1.852 km/h or 1.151 mph. It is the international standard speed unit in aviation and maritime navigation.
L
Lean Body Mass (LBM)
Lean Body Mass (LBM) is total body weight minus fat mass - everything that is not fat: muscle, bone, organs, blood, skin, and water. LBM drives basal metabolic rate and is the basis for drug dosing calculations.
M
Mach Number
A Mach number is the ratio of an object's speed to the local speed of sound. Mach 1 is approximately 1,225 km/h (761 mph) at sea level and 15°C. Aircraft exceeding Mach 1 are supersonic.
Merit Increase
A merit increase is a salary raise awarded based on individual job performance, distinct from cost-of-living adjustments. U.S. employers typically budget separate merit pools of 3-5%, distributed according to performance ratings, with high performers receiving a larger share.
Married Filing Jointly (MFJ)
Married Filing Jointly (MFJ) is a US federal tax filing status for legally married couples who combine both spouses' income on a single return. MFJ uses wider tax brackets than single filers, reducing the total tax bill for most couples. About 38% of all US tax returns are filed jointly.
Married Filing Separately (MFS)
Married Filing Separately (MFS) is a US federal tax filing status where each spouse files an independent return using single-style tax brackets and a $15,000 standard deduction. MFS nearly always produces a higher combined tax bill than MFJ but can lower individual AGI for income-driven student loan repayment or protect one spouse from the other's tax liabilities.
Multiple on Invested Capital (MOIC)
Multiple on Invested Capital (MOIC) measures total value returned relative to total capital invested, expressed as a multiple. A 3.0x MOIC means every dollar invested returned three dollars. It is the primary return metric in private equity and venture capital.
N
Net Income
Net Income is a company's bottom-line profit - revenue minus every expense including COGS, operating costs, interest, and tax. It is the figure reported as EPS (Earnings Per Share) for public companies.
Net Profit Margin
Net Profit Margin is Net Income as a percentage of revenue. It is the most comprehensive profitability ratio - the percentage of each revenue dollar that ultimately belongs to shareholders after all costs.
Nautical Mile (nmi)
A nautical mile is exactly 1,852 meters - one arcminute of latitude on Earth's surface. This geometric link to latitude makes it the standard distance unit for aviation and maritime navigation worldwide.
Net Pay
Net pay is take-home pay - the amount deposited into your bank account after all mandatory and voluntary deductions are removed from gross pay. For most US workers, net pay is 65-75% of gross pay depending on tax bracket and benefit elections.
Net Present Value (NPV)
Net Present Value (NPV) is the sum of all investment cash flows discounted to today's value using a chosen rate. A positive NPV means the project earns more than its cost of capital and creates value; a negative NPV destroys value.
O
Operating Expenses (OpEx)
Operating Expenses (OpEx) are the ongoing costs of running the business that are not directly tied to production. They include SG&A, R&D, and depreciation of operating assets - but not interest or tax.
Operating Profit
Operating Profit (also called EBIT) is the profit generated from core business operations after deducting COGS and all operating expenses, but before interest and tax. It isolates operational performance from financing and tax effects.
Operating Profit Margin
Operating Profit Margin (also called EBIT Margin) is Operating Profit as a percentage of revenue. It shows how efficiently a business converts revenue into operating profit, excluding financing and tax effects.
Overtime Pay
Overtime pay is the additional compensation earned for hours worked beyond a set threshold - typically 40 hours per week in the US. Under the FLSA, non-exempt employees must receive at least 1.5 times their regular rate for overtime hours.
P
Pay Period
A pay period is the recurring length of time for which an employer calculates and pays wages. Common types are weekly, bi-weekly (every two weeks), semi-monthly (twice a month), and monthly. Bi-weekly gives 26 pay cheques per year; semi-monthly gives 24.
P/E Ratio (Price-to-Earnings)
The P/E Ratio (Price-to-Earnings) is a stock's price divided by its annual earnings per share. It answers: how many dollars are investors paying for each dollar of profit? A higher P/E reflects higher growth expectations - or higher risk.
Percentage
A percentage is a ratio expressed as a fraction of 100, using the symbol %. It is the universal language for expressing proportions - placing values of vastly different scales on a common 0–100 reference.
Percentage Change
Percentage change measures how much a quantity has increased or decreased relative to its original value. A positive result is a gain; a negative result is a loss.
Percentage Decrease
Percentage decrease measures how much a value has fallen relative to its original value. The result is always positive - the direction is implied. A value cannot decrease by more than 100% of itself.
Percentage Difference
Percentage difference measures the relative gap between two values using their average as the base. Unlike percentage change, it is symmetric - the result is the same regardless of which value comes first.
Percentage Increase
Percentage increase measures how much a value has grown relative to its original value. It is the standard way to express growth - revenue growth, price increases, population growth.
Percentage Point
A percentage point (pp) is the arithmetic difference between two percentage values. Rising from 3% to 5% is a 2 pp increase - and also a 66.7% relative increase. These describe the same event in very different ways.
Proportion
A proportion is a statement that two ratios are equal: a/b = c/d. It is solved using cross-multiplication and underlies scaling, unit conversion, recipe adjustment, and similar-triangle geometry.
R
Revenue
Revenue (also called "the top line" or "turnover") is the total income earned from selling goods or services before any costs are deducted. Every profitability metric - gross margin, EBITDA, net profit - is derived from revenue.
Return on Investment (ROI)
Return on Investment (ROI) measures the net gain or loss on an investment relative to its cost, expressed as a percentage. It is the simplest and most universal metric for comparing the efficiency of different investments.
Return on Equity (ROE)
Return on Equity (ROE) measures how much net income a company generates for each dollar of shareholders' equity. It is the primary gauge of management's efficiency in using invested capital to create profit.
Ratio
A ratio compares two or more quantities, showing their relative sizes. Written as a:b or a/b, it is the foundation for fractions, percentages, rates, and proportions - the core language of proportional reasoning.
RPM (Revenue Per Mille)
RPM (Revenue Per Mille) is the estimated earnings per 1,000 page views on an ad-supported website. It is the standard benchmark for comparing monetisation performance across different content, traffic sources, or time periods in Google AdSense.
Regular Rate of Pay
The regular rate of pay is the baseline hourly rate used to calculate overtime under the FLSA. For hourly workers it equals the standard wage; for salaried workers it is the weekly salary divided by hours the salary is intended to cover.
S
SG&A
SG&A (Selling, General & Administrative expenses) are the overhead costs of running the business: sales force, marketing, executive salaries, rent, and back-office functions. SG&A is deducted from Gross Profit to arrive at Operating Profit.
Sales Tax
Sales tax is a government-imposed percentage added to the price of taxable goods and services at the point of sale. The seller collects it from the buyer and remits it to the state or local tax authority. In the US, 45 states levy a statewide sales tax; Alaska, Delaware, Montana, New Hampshire, and Oregon do not.
T
Time and a Half
Time and a half is an overtime rate equal to 1.5 times an employee's regular hourly pay. It is the minimum overtime rate required by the US Fair Labor Standards Act for hours worked beyond 40 in a workweek.
U
Unit Rate
A unit rate is a ratio with a denominator of exactly 1, expressing how much of one quantity corresponds to a single unit of another. Speed in km/h, price per kg, and words per minute are all unit rates.
V
Value Added Tax (VAT)
Value Added Tax (VAT) is a multi-stage consumption tax collected at each step of production and distribution. Businesses reclaim the VAT they paid on inputs, so only the net value added at each stage is taxed. Over 175 countries use VAT; the US is the only major economy that does not.
W
Working Capital
Working Capital is the difference between current assets (cash, receivables, inventory) and current liabilities (payables, short-term debt). It measures a company's short-term liquidity - its ability to meet obligations due within a year.
Waist Circumference
Waist circumference measures abdominal girth at the natural waist. It is a direct indicator of visceral fat - the most metabolically harmful fat depot - and predicts cardiometabolic risk independently of BMI.