What is LTV (Lifetime Value)?

LTV (Lifetime Value, CLV) is total revenue (or margin) from a user over their entire relationship with the product or offer. It decides whether campaigns can scale at current CPA/CPI.

Calculation

LTV = Σ (ARPU per period × retention) or sum of all user transactions. In gambling—user NGR; in nutra—trial + rebills; in apps—subscriptions and IAP.

Scaling rule

LTV > CAC (or payout < LTV under CPA) with margin for hold. Payback period is time for LTV to cover CAC. Shorter payback enables aggressive scale.

In affiliate

Often only day-0 CPA is visible; rebill stats arrive late. Buyers forecast LTV from network cohort history or own postbacks. Hybrid CPA + revshare aligns LTV between network and affiliate.

Limits

LTV models are sensitive to churn, chargebacks, GEO mix. SKAdNetwork and privacy reduce long-term event visibility. Do not scale subscription verticals on day-0 ROI alone.

See also: CAC, churn rate, retention rate, ARPU.