EVA vs TTV
EVA (Economic Value Added) and TTV (Time To Value) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: EVA refers to economic value added, while TTV refers to time to value — they describe different things even when they show up in the same sentence.
EVA — Economic Value Added
Profit after subtracting the full cost of capital used to generate it. EVA tells you whether a business is actually creating value or just renting it from investors.
TTV — Time To Value
How long it takes a new customer to experience the outcome they bought. Shorter TTV is the single strongest predictor of retention, expansion, and referral.
When to use EVA
Reach for "EVA" when the conversation is specifically about economic value added. Profit after subtracting the full cost of capital used to generate it. EVA tells you whether a business is actually creating value or just renting it from investors.
When to use TTV
Reach for "TTV" when the conversation is specifically about time to value. How long it takes a new customer to experience the outcome they bought. Shorter TTV is the single strongest predictor of retention, expansion, and referral.
FAQs
What is the difference between EVA and TTV?
EVA stands for Economic Value Added — Profit after subtracting the full cost of capital used to generate it. EVA tells you whether a business is actually creating value or just renting it from investors. TTV stands for Time To Value — How long it takes a new customer to experience the outcome they bought. Shorter TTV is the single strongest predictor of retention, expansion, and referral.
Are EVA and TTV the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. EVA = Economic Value Added. TTV = Time To Value.
When should I use EVA vs TTV?
Use EVA when you're specifically referring to economic value added. Use TTV when the topic is time to value.