1. Set monthly player revenue
Enter average revenue generated by one active player in a month, using a consistent currency or internal value unit.
2. Enter gross margin
Provide the percentage of revenue retained after the variable costs you want the model to recognize.
3. Estimate active lifetime
Enter the average number of months a player is expected to remain active. Keep this period consistent with the monthly revenue input.
4. Add acquisition cost
Enter average cost to acquire one player if you want the breakdown to show value after acquisition cost. Use 0 if acquisition cost is not being evaluated.
5. Review the lifetime values
The main result is lifetime gross profit. The detail rows separate lifetime revenue, gross-profit LTV, and LTV after acquisition cost.