Mobile App Subscription LTV & CAC Calculator
Simulate mobile app subscriber economics after Apple & Google 15%–30% platform cuts and paid user acquisition.
Parameters & Config
Average monthly subscription fee billed per active customer
Percentage of customers cancelling their subscription each month
Total sales and marketing expenditure required to acquire one customer
Percentage of subscription revenue retained after hosting and direct support costs
Total gross profit generated per customer over their active lifecycle
Benchmark metric for SaaS efficiency (Ideal: 3.0x to 5.0x)
Key Metrics & Sub-Totals
3 itemsCalculation Summary & Unit Breakdown
| Metric | Calculated Value | Notes / Logic |
|---|---|---|
| Monthly ARPU (Revenue/User) | $9.99 | Per user/month |
| Monthly Churn Rate | 7.5% | Customer attrition |
| Gross Margin Percentage | 70% | Cost of service deducted |
| Customer Lifespan | 13.3 months | 1 / Churn rate |
| Customer Acquisition Cost (CAC) | $22.00 | Blended marketing + sales |
| Customer Lifetime Value (LTV) | $93.24 | Total gross profit per customer |
| LTV to CAC Health Ratio | 4.24x | Benchmark: >3.0x |
| CAC Payback Period | 3.1 months | Benchmark: <12 months |
| Net LTV Profit Contribution | $71.24 | LTV 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
Implement web-based checkout (e.g. Stripe web onboarding before app install) to retain 97% of subscription revenue instead of 70%–85%.
Use SKAdNetwork and adjust bidding for target Return on Ad Spend (tROAS) on Apple Search Ads.
Offer annual subscription defaults at paywalls to extend customer tenure.
Frequently Asked Questions
Q.How does the App Store 15% commission affect subscriber LTV?
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?
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?
At a 3.0x LTV:CAC target with $93.20 LTV, you can spend up to $31.07 to acquire a paying subscriber.