top of page

Customer Lifetime Value (CLTV or LTV)

The total revenue a company can expect from a single customer account.

If an Acme customer spends $500/year and remains a customer for 10 years: LTV = $500 x 10 = $5,000.

LTV is typically calculated by multiplying the average purchase value by the number of purchases per year by the average customer lifespan.

bottom of page