LTV - Customer Lifetime Value

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

Ryan avatar
Written by Ryan
Updated over a week ago

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 Churn Rate and multiplying the Lifetime with the monthly Average Revenue Per User.

Note: 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.


÷ Churn Rate (in % of users)




Customer Lifetime Value




Currency (Euro/Dollar/YEN/...)

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

50 €

÷ 5%


1.000 €

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