LTV (Customer Lifetime Value) Calculation. 5 Common Methods for EC Operators

"My executive team wants LTV in our monthly report. But there are like four different formulas online — how do I pick the right one?" This is one of the most common questions we hear from EC operators. LTV (Customer Lifetime Value) is widely used as a metric, but at least five common calculation methods exist. Pick the wrong one, and your business decisions rest on a shaky foundation. TL;DR There are five common LTV calculation methods : Simple, Gross Margin, Cohort, LTV/CAC, and DCF. Choose by