Lagging Indicator

A metric that reports an outcome after it has happened, like revenue, churn, or profit. Reliable but backward-looking.

Why it matters

Lagging indicators confirm results but arrive too late to change them. You need them to keep score, but pair them with leading indicators so you can act while there is still time.

For example

Quarterly revenue is a lagging indicator: by the time it drops, the churn that caused it happened months ago.

Related terms

Leading Indicator MRR Churn

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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