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 This KPI shows you how much you can spend on acquiring and holding a customer. You can also cluster your customers by acquisition channel to find out how much to spend on which ones. 

Lifetime Value is calculated by estimating the average lifetime of a customer by inverting the monthly <a href="http://docs.investory.io/en/articles/6231251-churn-rate" target="_blank">Churn Rate</a> and multiplying the Lifetime with the monthly <a href="http://docs.investory.io/en/articles/6231217-average-revenue-per-user" target="_blank">Average Revenue Per User</a>. 

<b>Note: </b>A calculation by inverting the monthly churn rate can only give a rough estimate of customer lifetime as the churn rate varies over time. Especially, if your business is still young and did not go through a whole customer life cycle, customer lifetime can be hard to calculate. 

                                       LTV

A company has a monthly churn rate of 5% per month and an ARPU of 50 €.

Lifetime Value (LTV) is the revenue that a business receives from a customer over time before they churn

LTV - Customer Lifetime Value

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Atlas	Customer Lifetime Value
Abbrevation	LTV
Unit	Currency (Euro/Dollar/YEN/...)