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Growth

LTV

Lifetime Value

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.

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