What is LTV?

Definition: LTV (lifetime value) is the profit a customer brings over the entire customer relationship.

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Example

Contribution margin €20 × 4 orders per year × 3 years = €240 LTV.

How to use it

With the “CAC and LTV Calculator” calculator you enter your own numbers and see the result instantly. It runs in your browser, without sign-up.

Related terms

  • CAC: CAC (customer acquisition cost) is all the cost you spend to win a new customer.

Frequently asked questions

What is LTV?

LTV (lifetime value) is the profit a customer brings over the entire customer relationship.

What is an example of LTV?

Contribution margin €20 × 4 orders per year × 3 years = €240 LTV.

Work it out with your numbers

The matching calculator runs in your browser. No sign-up.

CAC and LTV Calculator