Free customer lifetime value calculator for service businesses
Enter your visit revenue, annual retention rate, and gross margin and see the true LTV per customer update in real time. No signup, no credit card, and nothing is sent to a server, all calculations happen right here in your browser.
Typical invoice per service call or recurring maintenance visit.
How many times the average customer uses the service annually.
Percentage of customers who return each year. A jump from 70% to 85% often doubles LTV.
Margin after direct labor and materials costs.
What the business spends to bring in a new customer (ads, referral incentives, marketing).
Used to calculate the maximum sustainable acquisition spend. Above 3x is strong.
What this LTV calculator measures
Customer lifetime value is one of the most important numbers in a service business, but most owners estimate it loosely. This calculator breaks it down into the inputs that actually drive the result.
- Average revenue per visit. The typical invoice amount per service call or recurring maintenance visit, which is the starting point for the LTV calculation
- Visit frequency per year. How many times the average customer uses the service annually, since a quarterly pest customer generates 4x the annual revenue of a one-time customer
- Annual customer retention rate. The percentage of customers who renew or return each year, which is the most powerful lever in the LTV equation. A change from 70 to 85 percent retention often doubles the LTV
- Gross margin on service revenue. The margin after direct labor and materials, which converts gross revenue into actual profit contribution per customer
- Customer acquisition cost. What the business spends to bring in a new customer (marketing, ads, referral incentives), used to show the profit multiple over acquisition cost
- Years of customer relationship. The average number of years a customer stays before churning, derived from the retention rate, which lets the calculator show the total LTV both as an annuity and as a simple years-based estimate
- LTV-to-CAC ratio. The ratio of lifetime value to acquisition cost, a key health metric that investors and lenders look at, above 3x is strong, below 1.5x means the acquisition model is not covering costs
- Maximum sustainable CAC. The most the business can spend to acquire a customer while still maintaining a target LTV-to-CAC ratio, useful for setting ad spend limits
Related tools for owners
Keep the numbers when the job is booked
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