LTV (Lifetime Value)
The total profit a customer generates over the whole relationship — repeat purchases, renewals, referrals included.
Free · no signup · last reviewed August 29, 2026
The definition
The total profit a customer generates over the whole relationship — repeat purchases, renewals, referrals included.
Why it matters to an owner
LTV is what makes competitors' bids make sense: whoever profitably pays the most per customer wins the auction.
Keep going
LTV : CAC CalculatorWhat a customer is really worth over the whole relationship, against what one costs to acq…CPA (Cost Per Acquisition)Total spend divided by new customers won — leads that actually closed. Deeper than CPL bec…ROAS (Return On Ad Spend)Revenue attributed to ads divided by ad spend. A ROAS of 4 means $4 back per $1 spent — be…
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