What is our net LTV if we have: a monthly ARPU of $10, a gross monthly churn rate of 12%, and COGS of 10%?

You're really cranking away through these things

For the example, we will use the following values. ARPU $20, COGS 10%, and a gross monthly churn rate of 15%. Now to solve with those values

Here is the formula we will need to use to solve this

LTV = NET ARPU/churn rate. (Where churn rate stands for "gross monthly churn rate)

We are not given NET ARPU so we will have to solve for it.

NET ARPU = ARPU - (ARPU * COGS) Now to insert the values from the example

NET ARPU = $20 - ($20 * .10) Note*(10% is the same as written 10/100 or 1/10, which is why we used .10)

NET ARPU = $20 - $18 -> NET ARPU = $18 Now we can plug this into the first formula

LTV = NET ARPU/churn rate Now to plug in our numbers

LTV = $18/.15

LTV = $120 HURRAH!!

I know this is quite a bit more complicated than the last ones you solved, but I think you got this. Good luck, let me know if it gives you any more trouble.