In the fast-paced world of mobile marketing, knowing how to calculate CPI, ROAS, and LTV is essential for success. These core metrics help you evaluate your app’s performance, user acquisition efficiency, and long-term profitability. In 2025, with tighter budgets and rising ad costs, marketers must master these KPIs to stay competitive.
In this blog, we’ll break down what CPI, ROAS, and LTV are, why they matter, and how to calculate each of them — with examples tailored for today’s app ecosystem.
🎯 What Is CPI (Cost Per Install)?
CPI, or Cost Per Install, tells you how much you’re paying to get one user to install your app via a paid campaign.
🔢 How to Calculate CPI:
CPI = Total Ad Spend / Number of Installs
📌 Example:
If you spent $5,000 on ads and got 2,000 installs:
CPI = $5,000 / 2,000 = $2.50 per install
Why Calculate CPI ROAS LTV? Because CPI gives you a clear view of your ad efficiency. A high CPI means you’re overpaying for installs, while a low CPI suggests better optimization.
📈 What Is ROAS (Return on Ad Spend)?
ROAS measures the revenue generated per dollar spent on advertising.
🔢 How to Calculate ROAS:
ROAS = Revenue from Ads / Ad Spend
📌 Example:
If you earned $8,000 in revenue from a $2,000 campaign:
ROAS = $8,000 / $2,000 = 4x or 400%
You should calculate CPI ROAS LTV together to get a full picture. A high ROAS indicates your campaigns are profitable. If ROAS is under 1x, you’re losing money on ads.
💸 What Is LTV (Customer Lifetime Value)?
LTV is the total revenue you can expect from a single user during their entire time using your app.
🔢 How to Calculate LTV:
LTV = ARPU × User Lifetime
- ARPU: Average Revenue Per User
- User Lifetime: How long (on average) users remain active
📌 Example:
If your average user spends $15 over 3 months:
LTV = $15 × 3 = $45
When you calculate CPI ROAS LTV together, LTV is your north star. If your LTV is less than your CPI, your app is losing money. Ideally, LTV should be at least 3x your CPI.
🔄 Connecting CPI, ROAS, and LTV: Why They Matter Together
To build a sustainable app business, you can’t look at these metrics in isolation. You must calculate CPI ROAS LTV in combination to answer:
- Are you spending efficiently (CPI)?
- Are your campaigns profitable (ROAS)?
- Are your users valuable (LTV)?
When your LTV > CPI and ROAS > 1x, you’re in the sweet spot.
🧠 Pro Tip: Use Cohort Analysis
While you calculate CPI ROAS LTV, also track cohorts — user behavior over time — to get deeper insights. Tools like Adjust, Appsflyer, and Firebase can help automate and visualize these calculations.
🚀 2025 Trends That Affect These Metrics
- Privacy-first targeting (SKAN 4.0, Android Privacy Sandbox)
- AI-driven creatives and ad optimization
- Incrementality testing for better ROAS accuracy
- Retention-based UA strategies
You must calculate CPI ROAS LTV dynamically as user behavior and platforms evolve.
📊 Tools to Help You Calculate CPI, ROAS & LTV
- Adjust
- Appsflyer
- Singular
- Kochava
- Firebase
- Google Sheets + GA4
These tools can automate and integrate your efforts when you need to calculate CPI ROAS LTV at scale.
✅ Conclusion
If you’re serious about scaling your app in 2025, you must know how to calculate CPI, ROAS, and LTV with precision. These three KPIs are more than vanity metrics — they’re strategic levers for profitable growth.
Need help optimizing your campaigns? At AppFillip, we’ve helped 800+ apps grow using data-backed performance marketing. Let’s help you master your metrics.