Lifetime value (LTV)

Lifetime value (LTV) is the total money you can expect from one paying person over all the time they keep paying.

Also called LTV, Customer lifetime value, CLV.

In plain words

A Fern subscriber pays about $48 in total before they stop.

How Apparent would say it about Fern, an example app in the live demo.

How it's worked out

For a monthly subscription, roughly: monthly price you keep ÷ the share of subscribers who stop each month. $2.40 ÷ 5% = $48.

Good to know

LTV is the ceiling on what you can spend to win a customer. If a subscriber is worth $48 and an ad costs $60 per subscriber, the ads lose money.

It's an estimate built on how long people have stayed so far. Young apps don't have enough history, so treat early LTV as a range, not a number.

Our free subscription revenue calculator works out lifetime value from a price and a cancel rate.

Try it with your own numbers: Subscription revenue calculator.

Where the number comes from

Worked out from RevenueCat or the stores' subscription history.

Related terms

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