# App ROAS, LTV & CAC Calculator

> Calculate CPI, CAC, LTV, ROAS, LTV:CAC and payback period for your app from ad spend, installs and conversion rate. Free and instant.

Free interactive tool: https://www.ottosocial.ai/resources/tools/app-roas-ltv-calculator

## How to use it

1. Enter ad spend and installs.
2. Add install-to-paid conversion and monthly price.
3. Review CPI, CAC, LTV, ROAS and payback.

## What it calculates

CPI = spend / installs. CAC = spend / paying customers. LTV = monthly revenue per customer x average lifetime in months. LTV:CAC compares them, and payback shows how many months to earn back CAC.

## Reading the result

An LTV:CAC of 3:1 or better is a common benchmark; lower can still be fine if payback is quick and you can fund it.

## Related

- [App marketing metrics explained](/resources/blog/app-marketing-metrics-explained)
- [Glossary: ROAS](/resources/glossary/roas)

## Frequently asked questions

### How do you calculate ROAS for an app?

Divide revenue attributed to your ads by ad spend. A 2.0 ROAS returns two dollars per dollar spent.

### What is break-even ROAS?

One divided by your gross margin. At a 70% margin, break-even ROAS is about 1.43.