ARPU vs Lifetime Value (LTV)
What each means, how they relate, and when to use which.ARPU is average revenue per user in a given period, such as a month; lifetime value is the total revenue a customer is expected to generate over their entire relationship. ARPU is a periodic rate; LTV is the cumulative total. LTV is roughly ARPU stretched across a customer's whole lifespan, minus churn.
The average amount of revenue an operator earns per user over a set period, found by dividing total revenue by the number of users.
Use it when Use ARPU for how much a user is worth per period right now.
Full definition of ARPU →Lifetime Value is an estimate of the total net revenue a player is expected to generate for an operator across the whole time they remain active.
Use it when Use LTV for the total value a customer generates over their whole lifespan.
Full definition of Lifetime Value (LTV) →The key distinction
- ARPU is per-period; LTV is cumulative over the full customer lifetime.
- ARPU is a snapshot rate; LTV depends on retention and expected lifespan.
- LTV is used against acquisition cost; ARPU is used to track current monetisation.
Common questions
What's the difference between ARPU and Lifetime Value (LTV)?
ARPU is average revenue per user in a given period, such as a month; lifetime value is the total revenue a customer is expected to generate over their entire relationship. ARPU is a periodic rate; LTV is the cumulative total. LTV is roughly ARPU stretched across a customer's whole lifespan, minus churn.
What is ARPU?
The average amount of revenue an operator earns per user over a set period, found by dividing total revenue by the number of users.
What is Lifetime Value (LTV)?
Lifetime Value is an estimate of the total net revenue a player is expected to generate for an operator across the whole time they remain active.
More term comparisons
Understanding, not advice. This explains how two terms differ so you can read the industry clearly. Nothing here treats gambling as a way to make money; the maths favours the house. 18+.