Lifetime Value (LTV)

Lifetime Value (LTV) is the present value of the future net profit from a customer over the duration of the relationship. LTV helps determine the long-term value of the customer and how much net value a company generates per customer after calculating customer acquisition costs (See CAC).

Example:

Our CAC is $4, but our LTV is $28.
More Information: The math that shows an LTV/CAC of 8.58x will take you public
The right LTV/CAC for a B2C business
Return to Glossary