Margins, break-even & unit economics · Core

Lifetime value

Also called: LTV, CLV

ELI5

Estimated value produced by a customer over the relationship under specified assumptions.

Used in conversation

“Keep lifetime value on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Lifetime value” 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.

Connected terms

Sources & evidence · 4

Direct term-level sources and supporting source families.