The Details on LTV

LTVn is the average revenue derived from each user during the first n days after they install your app. It is calculated as a historical average over a cohort of users who installed more than n days ago as:

total cohort revenue by D_n / cohort size

But what about for large values of n? And what about the new users who install today? One common means of predicting LTV is to multiply average revenue per daily active user (ARPDAU) by the expected player days (i.e., the summation of the retention curve).

If your current ARPDAU or retention have improved, predicted LTV for new users will increase.