# Lifetime value

> The total revenue, or profit, a customer brings over their whole relationship with you.

Source: https://datacenter.so/glossary/ltv
Also called: LTV, CLV, customer lifetime value.

Lifetime value (LTV, or CLV) adds up what a customer is worth across all their purchases, not just the first. A simple estimate: average order value × orders per customer over a period × gross margin.

Use real repeat rates from your own customers, over a period you have data for, such as 12 months. Comparing it by first source over a fixed span is covered in [cohorts and retention](https://datacenter.so/guides/cohort-retention-analysis). LTV is what lets you pay more to acquire a customer than their first order earns, as long as the repeat purchases are real.

## Related terms

- https://datacenter.so/glossary/cpa
- https://datacenter.so/glossary/roas
- https://datacenter.so/glossary/conversion