# What is LTV?

> LTV (lifetime value) is the total net revenue a prop firm earns from one trader across every evaluation, reset and add-on they buy, minus the rewards paid to them.

- Source: https://pipvalley.com/glossary/lifetime-value
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

In a prop firm, LTV is unusually important because many traders buy more than once: a second attempt after a breach, a larger account after a pass, resets and add-ons. A simple LTV is total net revenue per customer over a period; a fuller version subtracts performance rewards paid to that customer.

LTV varies sharply by acquisition channel and program. Traders who arrive through education creators may behave differently from those who arrive through discount sites, so segment it.

Early-stage firms rarely have enough history for a reliable LTV. Use cohorts by month of first purchase and treat early figures as estimates.

## Why it matters

LTV against CPA decides how much you can afford to spend to win a trader. It also reframes the website: the second purchase depends on the dashboard, breach emails, reset offers and how fairly the first attempt felt. A firm with a good LTV can outspend competitors on acquisition without discounting.