14 answers · 5 topics
What is the difference between…
Side-by-side answers for terms people mix up: baking soda vs baking powder, MRR vs ARR, CAC vs LTV, APR vs APY, gross vs net margin, kahm yeast vs mold.
Every answer here cites at least three sources, with a note on what each one adds.
Business and SaaS
- What is the difference between CAC and LTV?
CAC (Customer Acquisition Cost) is what you SPEND to get one customer. LTV (Lifetime Value) is what that customer is WORTH to you over time.
- What is the difference between MRR and ARR?
MRR (Monthly Recurring Revenue) is the monthly value of active subscriptions. ARR (Annual Recurring Revenue) is MRR × 12 — the annualized run-rate.
- What is the difference between burn rate and runway?
Burn rate is how fast you SPEND money (cash out, $/month). Runway is how long you SURVIVE on current cash (months until $0). Burn × runway = total cash.
- What is the difference between churn rate and retention rate?
Churn rate is the percentage of customers or revenue LOST in a period; retention rate is the percentage KEPT.
- What is the difference between CAC and CPA?
CAC (Customer Acquisition Cost) is total sales and marketing spend divided by new PAYING CUSTOMERS, across all channels, fully loaded with salaries and tools.
- What is the difference between NPS and CSAT?
NPS (Net Promoter Score) measures long-term loyalty by asking how likely you are to recommend a company (0-10 scale, reported −100 to +100).
- What is the difference between gross margin and net margin?
Gross margin is profit after only direct costs (COGS), as a percentage of revenue.
Baking
- What is the difference between brown sugar and white sugar?
Brown sugar = white sugar + molasses (3.5% light, 6.5% dark).
- What is the difference between baking soda and baking powder?
Baking soda = pure alkali (sodium bicarbonate). Needs acidic ingredient (buttermilk, lemon, vinegar, brown sugar, cocoa) to activate.
- What is the difference between sourdough and yeast bread?
Sourdough uses wild yeast + lactobacillus from a fermented starter (slow rise, tangy, complex flavor, longer-keeping).
- What is the difference between butter and margarine?
Butter = made from cream (animal fat, dairy). Margarine = made from vegetable oils (plant fat, processed).
Cooking
- What is the difference between tamari and soy sauce?
Tamari = Japanese soy sauce made from soybeans (no wheat). Soy sauce = Chinese-Japanese style made from soybeans + wheat.
Fermentation
- What is the difference between kahm yeast and mold?
Kahm yeast is a flat, white, wrinkly film that is harmless — skim it and carry on.
Personal finance
- What is the difference between APR and APY?
APR (Annual Percentage Rate) is what you PAY to borrow — it includes fees but ignores compounding.