GlossaryCustomer Lifetime Value
LTVStartup Metrics

Customer Lifetime Value

(LTV)

Definition

The total revenue you expect to generate from a single customer over their entire relationship with your company. LTV = Average Revenue Per Customer ÷ Monthly Churn Rate.

Why founders care

LTV must be significantly higher than CAC for a sustainable business. Most investors want LTV:CAC ratio of at least 3:1.

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