Comparison
LTV vs MRR
LTV estimates long-term customer value; MRR measures normalized subscription revenue in a month.
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Lifetime Value (LTV)
Lifetime Value represents the total gross profit or expected contribution from a customer relationship over time.
LTV = Average Customer Value x Average Customer Lifespan- Category
- Analytics & Measurement
- Used for
- Forecasting, Budget allocation, Performance diagnosis
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue is predictable recurring subscription revenue normalized to a monthly view.
MRR = Sum of active recurring subscription revenue in a month- Category
- Analytics & Measurement
- Used for
- Forecasting, Budget allocation, Performance diagnosis