LTV
Also called customer lifetime value
By the AdFlint research team · Last reviewed July 2026
The total revenue, or ideally gross profit, a customer generates across the whole relationship with you rather than on their first purchase alone.
It sets the ceiling for what acquisition can rationally cost, which is why it is normally read against CAC. The figure is a forecast, built on retention and repeat-rate assumptions that young businesses simply do not have yet. The common misreading is using a revenue-based version to justify spend; only the margin inside that revenue can actually pay for advertising.
CAC, LTV & Payback Calculator
Work out customer acquisition cost, lifetime value, the LTV:CAC ratio, and payback period before you scale ad spend.
Open the free calculatorLTV compared with
The settings this gets confused with, and how to tell them apart.
You should not need to know this to advertise.
AdFlint handles the settings for you, inside the Google and Meta accounts you already own.
Try AdFlint free