Download Effective CPI (Cost Per App Install) Calculator – Find Out How To Find The Real Cost Of An App Install

# Download Effective CPI (Cost Per App Install) Calculator – Find Out How To Find The Real Cost Of An App Install

Deepak Abbot
Deepak is AVP at Paytm. He had previously worked with companies like Reliance Entertainment-Digital, Zapak & Satyam computers.

Finding the cost of your app install is simple — price (CPI) you pay to a network? Think again — is it the actual cost of each net install? Here is a quick math on how to calculate it accurately (excel calculator available below to download):

### You need to have the following 3 basic numbers available to start with

Price you pay per install: CPI paid to network
Average uninstall rate: Available from Android App Store dashboard
K Factor (How many organic install brought in by a paid one): Varies as per the rank bucket— check the table below.

### K Factor Table

Apps ranked between 1 to 10 = 2.5
Apps ranked between 11 to 25 = 1.5
Apps ranked between 26 to 50 = 1
Apps ranked between 51 to 100 = 0.5
Apps above 101 = 0.1
(Note: Rank in overall Free or Overall Paid section)

So now lets take an example and find App’s effective CPI:

### Example 1: App ranked between 11 to 25

(A) Install Recd: 1
(B) CPI Charged by Network: \$2.5
(C) Total Paid to Network: A x B = \$2.5
(D) Uninstall Rate: 40%
(E) Net Installs: A/(1-D) = 0.6
(F) K Factor: 1.5 (Refer table above)
(G) Organic Install: E x G = 0.9
(H) Total Installs = E + G= 1.5

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Effective CPI = H/ C= \$1.67

So in above example your effective cost of getting an install is \$2.08

Now lets see how the math changes if your app is ranked below 100:

### Example 2: App ranked below 100

(A) Install Recd: 1
(B) CPI Charged by Network: \$2.5
(C) Total Paid to Network: A x B = \$2.5
(D) Uninstall Rate: 40%
(E) Net Installs: A/(1-D) = 0.6
(F) K Factor: 0.1 (Refer table above)
(G) Organic Install: E x G = 0.06
(H) Total Installs = E + G = 0.66
Effective CPI = H / C = \$3.79

To make things easy, I am attaching a CPI calculator made in excel which helps you input your app’s details and find out the true CPI.

Hope this helps. Feel free to reach out to me at [email protected] Or connect with me at twitter.com/deepakabbot

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

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