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DevFormula
SaaS Unit Economics & GrowthVerified 2026-10-21

Mobile App Subscription LTV & CAC Calculator

Simulate mobile app subscriber economics after Apple & Google 15%–30% platform cuts and paid user acquisition.

Parameters & Config

$
$
1$50,000$

Average monthly subscription fee billed per active customer

%
%
0.1%50%

Percentage of customers cancelling their subscription each month

$
$
1$50,000$

Total sales and marketing expenditure required to acquire one customer

%
%
10%100%

Percentage of subscription revenue retained after hosting and direct support costs

Customer Lifetime Value (LTV)LIVE ESTIMATE
$93.24

Total gross profit generated per customer over their active lifecycle

LTV to CAC Health RatioLIVE ESTIMATE
4.24

Benchmark metric for SaaS efficiency (Ideal: 3.0x to 5.0x)

Key Metrics & Sub-Totals

3 items
CAC Payback PeriodNumber of months required to recoup acquisition spend
3.1 months
Average LifespanExpected active subscription duration before churn
13.3 months
Net LTV Profit ContributionLTV minus initial acquisition cost
$71.24

Calculation Summary & Unit Breakdown

MetricCalculated ValueNotes / Logic
Monthly ARPU (Revenue/User)$9.99Per user/month
Monthly Churn Rate7.5%Customer attrition
Gross Margin Percentage70%Cost of service deducted
Customer Lifespan13.3 months1 / Churn rate
Customer Acquisition Cost (CAC)$22.00Blended marketing + sales
Customer Lifetime Value (LTV)$93.24Total gross profit per customer
LTV to CAC Health Ratio4.24xBenchmark: >3.0x
CAC Payback Period3.1 monthsBenchmark: <12 months
Net LTV Profit Contribution$71.24LTV minus CAC

Overview & Methodology

Mobile consumer apps monetizing via in-app subscriptions must factor in the 15% to 30% Apple App Store / Google Play commission alongside paid ad spend (Meta Ads, Apple Search Ads, TikTok) when modeling unit profitability.

Mathematical Formulation

Net In-App ARPU = Store Price × (1 - App Store Cut % - Server Cost %). Mobile LTV = Net ARPU / Monthly Churn.

Optimization Best Practices

1

Implement web-based checkout (e.g. Stripe web onboarding before app install) to retain 97% of subscription revenue instead of 70%–85%.

2

Use SKAdNetwork and adjust bidding for target Return on Ad Spend (tROAS) on Apple Search Ads.

3

Offer annual subscription defaults at paywalls to extend customer tenure.

Frequently Asked Questions

Q.How does the App Store 15% commission affect subscriber LTV?
A.

On a $9.99 subscription, a 15% store cut plus 15% hosting cost leaves $6.99 net profit per month, directly determining your LTV ceiling.

Q.What is the LTV on a $9.99 app with 7.5% churn and 70% net margin?
A.

Net monthly profit is $6.99. Divided by 0.075 churn, LTV is $93.20 over an average 13.3 month lifespan.

Q.What is a sustainable cost per install (CPI) / blended CAC for this tier?
A.

At a 3.0x LTV:CAC target with $93.20 LTV, you can spend up to $31.07 to acquire a paying subscriber.