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Demystifying Startup Math: A Guide to TAM, Metrics, and Business Growth

Prime Venture Partners Podcast

CHAPTER

How to Calculate LTV for a Customer

When you go and acquire a customer for $1,000. You can say, look, I'm not losing money. So my payback is there as soon as the customer comes onboard. For calculating LTV for that customer now, you'll have to understand the recurring nature of the revenues. But Amit, when you're looking at B2C businesses, right, the almost always companies will be doing... They'll be refunds, returns, right, and going on. And so what is a clean and fair way of accounting that because almost any business with stars has to face these kind of things?

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