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What is a customer worth? lifetime value calculator
Include repeat jobs and maintenance plans to see the gross profit a customer brings over the years.
$
Revenue per job
%
After labor + materials
Repairs + repeat work
How long they stay
$
0 if you don't sell plans
%
Gross margin on plans
3 is a common rule of thumb
Lifetime gross profit
$2,205
Per customer
Gross profit per year$441
Lifetime revenue$4,050
Most you can pay to acquire$735
- 01Enter job value and margin
- 02Add how often customers come back
- 03Include maintenance plans if you sell them
Show your work
Formulas and assumptions
Formulas
- Yearly gross profit = jobs/yr × job value × margin% + plan revenue × plan margin%
- LTV = yearly gross profit × years
- Max acquisition cost = LTV ÷ target ratio
Assumptions
- Uses gross profit, not revenue, so the result is money you can actually spend.
- No discounting of future years.
Repeat work changes what you can pay
A customer on a maintenance plan is worth several times a one-off repair. Knowing the lifetime number lets you outbid competitors who only look at the first job.
Now put an ad behind the numbers.
Homivas writes the ad, makes the creative and tracks each inquiry from first click to won job.
Self-serve · No sales calls · Cancel anytime