← GlossaryUnit economics
LTV
Also known as · Lifetime Value · Customer Lifetime Value
Total value a customer delivers over the duration of their relationship.Customer lifetime value (LTV) is the total revenue or contribution margin a customer generates from first purchase through churn. The number you actually want is contribution-margin LTV (after COGS, before marketing) — gross LTV looks bigger but misleads scaling decisions.
Related terms
Other unit economics terms.
CAC
Total marketing + sales spend divided by new customers acquired.
AOV
Total revenue divided by total orders for a period.
MRR
Total predictable monthly subscription revenue across all active customers.
ARR
MRR multiplied by 12 — the annualized run rate of subscription revenue.
Churn Rate
Percentage of customers who cancel or fail to renew in a given period.
Let's get started
Stop guessing. Start compounding.
Tell us what's broken. We'll come back inside 24 hours with a plan — not a pitch deck.