LTV
Abbreviation with 2 meanings
| Stands for | Lifetime value |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance |
LTV has two meanings. It stands for Lifetime value (marketing & advertising) or Loan-to-value ratio (real estate & mortgage).
Meanings of LTV at a glance
| # | LTV stands for | Context |
|---|---|---|
| 1 | Lifetime value | Business & Finance › Marketing & Advertising |
| 2 | Loan-to-value ratio | Business & Finance › Real Estate & Mortgage |
1. Lifetime value
Business & Finance · Marketing & Advertising Abbreviations
Total revenue or gross profit a business expects from a customer over the whole relationship, used to decide how much it can spend acquiring and retaining customers. A simple subscription estimate is average monthly gross profit per customer divided by monthly churn rate.
Example: At $30 a month, 70% margin and 3% monthly churn, LTV is about $700.
Often paired with CAC as the LTV:CAC ratio. Investors favor LTV calculated on gross margin rather than revenue, since revenue-based LTV can make unprofitable growth look healthy. Also written CLV or CLTV. In mortgages, LTV means loan-to-value ratio, an entirely different measure.
2. Loan-to-value ratio
Business & Finance · Real Estate & Mortgage Abbreviations
Mortgage amount divided by the property's appraised value or purchase price, whichever is lower, expressed as a percentage. A $320,000 loan on a $400,000 home has an 80% LTV.
Example: At 80% LTV, you avoid PMI and qualify for a better rate.
LTV drives pricing, mortgage insurance requirements and maximum loan amounts: conventional loans can reach 97% LTV, FHA 96.5%, and VA loans 100%. Cash-out refinances usually cap LTV around 80%. In marketing, LTV means customer lifetime value.
Related abbreviations
More marketing & advertising abbreviations
- IMC – Integrated marketing communications
- IO – Insertion order
- KOL – Key opinion leader
- LP – Landing page
- MarCom – Marketing communications
- MDF – Market development funds
- MEDDIC – Metrics, economic buyer, decision criteria, decision process…
- MOFU – Middle of the funnel
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