← Business Dictionary
Growth

LTV

Lifetime Value

Also known as lifetime value, customer lifetime value, cltv

The total money you expect to earn from one customer over the whole time they stay with you.

Example

A customer paying ₹1,000/month who stays 2 years has an LTV of ₹24,000.

Formula

LTV = Average Revenue per Customer × Average Customer Lifespan

Related terms

Churn
The percentage of customers (or revenue) you lose in a given period. High churn means people keep leaving.
CAC
The average amount you spend to win one new paying customer — all your marketing and sales costs divided by how many customers that money brought in.
ARPU
On average, how much money each user brings in over a period.

Building a startup?

Base91 takes founders from idea to launch — tracker, community, AI toolkit and this dictionary, built in.

Create your account