LTV
What is LTV?
LTV is customer lifetime value, the estimated revenue value of a customer over their lifespan.
Also known as: CLV, Customer Lifetime Value, Lifetime Value
LTV Formula
LTV = ARPA × (1 / CHURN) | Variable | Meaning |
|---|---|
ARPA | Average revenue per account. |
CHURN | Customer churn rate. |
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How to Calculate LTV
Worked example
- ARPA (monthly)
- $500
- Monthly Churn
- 2%
- → LTV
- $25,000
LTV Calculator
LTV = ARPA × (1 / CHURN) | Variable | Meaning |
|---|---|
ARPA | Average revenue per account. |
CHURN | Customer churn rate. |
Worked example
- ARPA (monthly)
- $500
- Monthly Churn
- 2%
- → LTV
- $25,000
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Prefer a dedicated page? Use the LTV calculator.
Common Mistakes with LTV
LTV vs Related Metrics
- LTV vs CAC — how the two differ and when each matters.
LTV FAQ
How do you calculate LTV?
LTV = ARPA x (1/CHURN)
More questions? See the full LTV FAQ.