Definition
LTV = ARPA ÷ Monthly Churn Rate.
LTV:CAC ratio
A ratio of 3:1 or higher is typically healthy for SaaS.
Customer lifetime value (LTV)
LTV estimates total revenue from a customer over their lifetime. LTV:CAC ratio should be at least 3:1 for healthy unit economics.
RevenueAlso called: LTV, CLV, Lifetime value
About this term
This page is part of the Skene PLG glossary. Use it as a reference when writing specs, dashboards, or playbooks.
Canonical glossary index: /resources/glossary
