What is a KPI in Power BI?

A Key Performance Indicator (KPI) in Power BI is specifically designed to display performance against a target metric, often represented visually for clarity and quick understanding. KPIs help users track the success of a specific objective by comparing actual performance with pre-defined target values.

The visual representation typically includes a gauge or similar graphical element that clearly indicates whether performance is above, below, or at the target level. This not only helps in assessing business performance at a glance but also allows for better decision-making based on the insights derived from the data. By focusing on metrics that are critical for success, KPIs ensure that users are aware of the most important targets and whether the organization is on track to meet its goals.

The other options do not accurately define what a KPI is within the context of Power BI. Calculated fields and data source configurations serve different functions related to data manipulation and sourcing rather than performance tracking. User interface options for managing reports pertain to different aspects of report creation and management without focusing on performance metrics specifically.