Lifetime value (LTV)

Lifetime value, or LTV,  is the average stream of revenues expected per paying customer net of Shopify fees. To calculate LTV for each source/medium/keyword, we divide the ARPU for that source/medium/keyword by its churn. 

LTV=ARPU/churn

For instance, if ARPU is $100 and churn is 10%, the LTV is $100/0.1=$1,000.

Note: When a source/keyword has 0% churn, we use the average churn for your app to calculate its LTV.