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@613jono But your LTV considers all users (both non-paying and paying customers), while CAC only considers your paying customers. The cost of acquiring a paying customer is higher than acquiring a regular user, so the LTV vs. CAC ratio will therefore be off. The LTV to CPA ratio should be more...

@613jono That would then mean that to calculate your ROI, you need to divide your LTV by your CPA (cost of acquiring any user), not your CAC (cost of acquiring a paying customer). Correct?

Should I include non-paying users in the data set when calculating LTV, or should I only include paying customers? E.g. if I only have four users, who paid the following over a period of time: User A: $0 User B: $0 User C: $2 User D: $4 If we discount forecasting, does that mean that the...