Estimate the economic value of a player on a persistent game server. The model uses monthly revenue, gross margin, retention, and acquisition cost to calculate gross lifetime value, net value after acquisition, and the expected active lifetime. Use it for scenario planning while keeping cohort, platform, and currency assumptions consistent.
Net LTV approximates contribution after variable delivery costs and player acquisition, before fixed overhead, taxes, and the time value of money.
This constant-retention model is intentionally simple. Cohort curves are preferable when retention changes sharply with player age.
At $18 monthly revenue, 65% margin, 82% retention, and $9 acquisition cost, net LTV is $56.00.
At 100% retention the constant-rate model implies an infinite lifetime, so it cannot produce a finite estimate.
No. The result uses gross margin and acquisition cost; fixed overhead must be considered separately.
Use revenue divided by all players in the cohort if you want per-acquired-player LTV.
Higher retention extends the expected active lifetime and therefore increases estimated lifetime value.
Yes, provided both channels use the same revenue, margin, retention, and attribution definitions.
| Input | Included |
|---|---|
| Monthly revenue | Average recognized player revenue |
| Gross margin | Revenue less variable service costs |
| Retention | Share remaining active month to month |
| Acquisition cost | Attributed cost to acquire one player |