Quick definition · 2 min Builder & startup term
LTV
LTV (lifetime value) is how much money one customer brings in, on average, over the whole time they stay.
Think of it like
A regular at a cafe is worth far more than one coffee. LTV counts all their visits, not just the first.
Example
A customer who pays 10 dollars a month for two years has an LTV of 240 dollars.
Why it matters
LTV versus CAC is the make-or-break ratio: you must earn more from a customer than you spent to get them.
Where you’ll see it
startup financeSaaS