LTV vs MRR
LTV (Lifetime Value) and MRR (Monthly Recurring Revenue) 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: LTV refers to lifetime value, while MRR refers to monthly recurring revenue — they describe different things even when they show up in the same sentence.
LTV — Lifetime Value
The total revenue a business expects from a customer throughout their entire relationship.
MRR — Monthly Recurring Revenue
The predictable revenue a business earns each month from subscriptions or contracts.
When to use LTV
Reach for "LTV" when the conversation is specifically about lifetime value. The total revenue a business expects from a customer throughout their entire relationship.
When to use MRR
Reach for "MRR" when the conversation is specifically about monthly recurring revenue. The predictable revenue a business earns each month from subscriptions or contracts.
FAQs
What is the difference between LTV and MRR?
LTV stands for Lifetime Value — The total revenue a business expects from a customer throughout their entire relationship. MRR stands for Monthly Recurring Revenue — The predictable revenue a business earns each month from subscriptions or contracts.
Are LTV and MRR the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. LTV = Lifetime Value. MRR = Monthly Recurring Revenue.
When should I use LTV vs MRR?
Use LTV when you're specifically referring to lifetime value. Use MRR when the topic is monthly recurring revenue.