How to use this calculator
- Enter average revenue per active player-month.
- Apply the gross margin retained after variable content or platform costs.
- Enter cohort-based monthly retention.
- Subtract monthly service cost and review contribution LTV.
#2862 · Sports & Gaming Tool
Player Retention Player Lifetime Value Calculator
Project contribution-based player lifetime value for a player-retention program. Combine average monthly revenue, gross margin, monthly retention, and service cost to estimate expected active months, lifetime revenue, contribution LTV, and an acquisition-cost ceiling. This compact model is useful for scenario planning when cohort history is still limited.
Calculator
Planning inputsFormula
Expected active months = 1 ÷ (1 − monthly retention)
Contribution LTV = [(monthly revenue × gross margin) − monthly service cost] × expected active months
What the result means
The result estimates contribution generated by an average player in the returning-player campaign before acquisition spending and fixed company overhead.
This geometric retention model assumes the same retention rate each month and does not discount future cash flows.
Example calculation
At $18 monthly revenue, 75% margin, 80% retention, and $2 monthly service cost, expected life is 5 months. Lifetime revenue is $90 and contribution LTV is $57.50.
Tips for better results
- Use cohort revenue rather than top-spender averages.
- Exclude taxes passed through to authorities.
- Test retention by player segment.
- Keep acquisition spend below contribution LTV.
- Replace the constant-rate model when a full retention curve is available.
Frequently asked questions
Why must monthly retention be below 100%?
At 100%, the constant geometric model implies an infinite lifetime, so a finite forecast cannot be calculated.
Is gross revenue the same as player LTV?
No. This calculator applies gross margin and service cost to estimate contribution rather than gross bookings alone.
Does this LTV include customer acquisition cost?
No. The result is a ceiling before acquisition cost; subtract actual acquisition cost to estimate net contribution.
Can I use day-30 retention as monthly retention?
Only as an approximation when the measurement windows and cohort definitions are compatible.
Does the model discount future player revenue?
No. It is an undiscounted planning model; long player lifetimes may warrant a discounted cash-flow approach.
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Player Lifetime Value inputs and outputs
| Input | Applied as |
|---|---|
| Monthly revenue | Average per active player-month |
| Gross margin | Share retained after variable revenue costs |
| Retention | Constant month-to-month survival rate |
| Service cost | Variable monthly support and hosting cost |