Margins, break-even & unit economics · Working

Gross-margin-adjusted LTV

Also called: contribution LTV

ELI5

Lifetime value calculated from gross profit rather than revenue.

Used in conversation

“Compare gross-margin-adjusted LTV with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Gross-margin-adjusted LTV” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 4

Direct term-level sources and supporting source families.

U.S. Small Business Administration — Break-even pointDirect source · primary · checked 2026-08-16
IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
Financial Accounting Standards Board — FASB Accounting Standards CodificationSupporting source family · primary · checked 2026-08-16
U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsSupporting source family · primary · checked 2026-08-16