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๐Ÿ’ฐ Free Tool for Mobile Developers

Mobile App
LTV Calculator

Calculate Customer Lifetime Value using ARPU, churn rate, and gross margin. Find your LTV:CAC ratio and payback period.

๐Ÿ“Š Your Metrics

Great: <3% Average: 5% High: >10%

๐Ÿ’Ž Lifetime Value Results

Simple LTV
$99.80
ARPU รท Churn
Gross Margin
LTV
$69.86
After costs
LTV:CAC
Ratio
4.7:1
Healthy
Payback
Period
4.3 mo
to recover CAC
Average Customer Lifespan 20 months

๐Ÿ“… Time-Bound LTV

Revenue over specific periods
3 Months
$14.25
6 Months
$26.56
12 Months
$46.11
24 Months
$71.56

๐Ÿ’ก Note: LTV calculation typically requires persistent user tracking. With session-based analytics, focus on revenue per session as an alternative metric.

Learn the Difference โ†’

๐Ÿ“ LTV Formulas Explained

Simple LTV

LTV = ARPU รท Churn Rate

Assumes infinite time horizon. Quick estimate for stable apps.

Gross Margin LTV

LTV ร— Gross Margin %

Revenue after costs. Use this for profitability analysis.

Time-Bound LTV

ARPU ร— ฮฃ(retention^n)

Sum of expected revenue over N months, accounting for churn.

โ“ Frequently Asked Questions

What is Customer Lifetime Value (LTV)?

Customer Lifetime Value is the total revenue you can expect from a single customer over their entire relationship with your app. It helps you understand how much you can afford to spend on customer acquisition (CAC).

How do I calculate LTV for a mobile app?

The simple formula is: LTV = ARPU รท Churn Rate. For example, if your monthly ARPU is $5 and monthly churn is 5%, your LTV is $5 รท 0.05 = $100. Multiply by gross margin for profitable LTV.

What is a good LTV:CAC ratio?

A healthy LTV:CAC ratio is 3:1 or higher. Below 1:1 means you're losing money. Between 1:1 and 3:1 may be sustainable but risky. Above 5:1 could mean you're under-investing in growth.

What is a typical churn rate for mobile apps?

Monthly churn varies by category: Gaming apps 4-8%, Subscription apps 5-10%, E-commerce 3-6%, SaaS companion apps 2-5%. Consumer apps typically have higher churn than B2B. Use our Churn Rate Calculator for detailed analysis.

Can I calculate LTV without user tracking?

Traditional LTV requires tracking individual users over time. With session-based analytics, use Revenue per Session as an alternative metricโ€”it measures monetization efficiency without persistent user IDs.

What's the difference between LTV and CLV?

LTV (Lifetime Value) and CLV (Customer Lifetime Value) are the same metricโ€”both represent total expected revenue from a customer. Some companies use CLTV. The terms are interchangeable.

Track Metrics Without Compromising Privacy

Respectlytics helps you measure what matters for LTVโ€”conversions, engagement, retentionโ€”using session-based analytics. No user tracking required.

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