LTV calculator for apps

Calculate the lifetime value of a paying user or subscriber from monthly revenue, store fees and churn, and compare it with what you pay to acquire them.

LTV Calculator

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70% or 85% on most app store plans

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Learn more: What is lifetime value (LTV)? · All app metrics in the glossary

LTV formula for apps

LTV = monthly revenue per paying user × share you keep ÷ monthly churn rate

The "share you keep" accounts for app store fees: on most plans, Apple and Google keep 15% or 30% of each purchase. Monthly churn is the share of paying users who cancel each month; 1 ÷ churn is the average lifetime in months. Get churn from the churn rate calculator.

Example

A subscription costs $9.99 a month, the developer keeps 85% and 8% of subscribers cancel each month. LTV = 9.99 × 0.85 ÷ 0.08 = $106.14. With an acquisition cost of $40 per subscriber, the LTV:CAC ratio is 2.7 : 1.

How to read LTV:CAC

How to raise LTV

Lower churn has the biggest effect, because it lengthens every customer's life. App reviews from cancelling users tell you what to fix first. More in the glossary: lifetime value (LTV) and cost per install.

FAQ

How do you calculate LTV for an app?

Multiply the monthly revenue per paying user by the share you keep after store fees, then divide by the monthly churn rate. $9.99 × 85% ÷ 8% = $106.14.

What is a good LTV:CAC ratio?

A common rule of thumb is 3 : 1 or higher: each user brings in at least three times what it cost to acquire them. Below 1 : 1 you lose money on every user.

Should LTV include store fees?

Yes, for decisions about spending. Apple and Google keep 15% or 30% of most purchases, so LTV based on gross revenue overstates what you can spend to acquire a user.

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