Definition
RPO (Recovery Point Objective) states, as a time span, how much data may be lost at most in a disaster: an RPO of one hour means backups at least hourly. RTO (Recovery Time Objective) is the longest acceptable time until the system runs again: an RTO of four hours means it must be up within four hours. Together they are the yardstick of backup and disaster-recovery design; a low RPO means frequent backups, a low RTO means standby hardware or replication, and both raise cost. How long each system may be down is discussed with these two numbers.
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In every backup project RPO and RTO are set in writing per system; the installation is sized to those targets and the restore test is reported with the measured time.