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DEFINITIONBusiness

LTV

Lifetime Value

The total revenue you expect from one customer across the whole time they stay with you. Often written LTV or CLV, and usually estimated rather than measured, because most customers haven't left yet.

EXAMPLE

A customer pays ₹999 per month and stays about 20 months on average. Their LTV is roughly ₹20,000.

WHY IT MATTERS

LTV sets the ceiling on what you can afford to spend acquiring a customer. A common rule of thumb is that LTV should be at least three times CAC — below that, growth is expensive and fragile.

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