# LTV

> LTV is a unit-economics metric, calculated as (ARPA × Gross margin) ÷ Revenue churn rate, both in the same period unit. Extremely sensitive to the churn input; unstable at low churn.

Source: https://lopifi.com/glossary/ltv
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is ltv?** LTV is a unit-economics metric, calculated as (ARPA × Gross margin) ÷ Revenue churn rate, both in the same period unit.

## Formula

`(ARPA × Gross margin) ÷ Revenue churn rate, both in the same period unit`

## Note

Extremely sensitive to the churn input; unstable at low churn

- **Category:** Unit economics
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** gross-margin, revenue, period, arpa