Economics
What is LTV?
Also: Lifetime value · CLV
LTV (lifetime value) is the total gross profit a customer is expected to generate across their whole relationship with you.
LTV turns a one-off purchase into its full economic value by adding expected repeat purchases and subtracting the cost of goods. Compared with CAC as an LTV:CAC ratio, it tells you how much you can afford to pay to acquire a customer. Use gross-profit LTV (after COGS), not revenue, or you will overpay for growth.
Last reviewed 2026-09-19
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