All terms
Finance
LTV
Lifetime value is the gross profit you expect from one customer before they leave.
Formula
LTV=Monthly revenue per customer×Gross margin×Months they stay
Calculate it now
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Why it matters
CAC only makes sense next to LTV. A common check is LTV at least 3 times CAC.
Example
A customer pays 1,000 TRY a month for 8 months at 80% margin. LTV is 6,400 TRY.
