Customer Lifetime Value (LTV) Calculator
Estimate the true lifetime value of your customers including repeat business and referrals. Critical for service businesses.
Typical service call or project value
How often they use your service
How long they remain a customer
% of customers who refer others
Revenue minus direct costs
Revenue LTV
Total revenue per customer
$3,600
Profit LTV
After cost of goods
$1,800
Annual Value
$50/month
$600
Each customer is worth $3,600 in revenue over their lifetime (5 years), including referral value. This means you can afford up to $600 in acquisition costs (1/3 of profit LTV).
What is Customer Lifetime Value?
Customer Lifetime Value (LTV or CLV) is the total worth of a customer over the entire relationship. For service businesses, this is often dramatically higher than the first job value.
LTV = Avg Job Value × Purchases/Year × Customer Lifespan × (1 + Referral Rate)
Example: $300 × 2/year × 5 years × 1.2 = $3,600 LTV
A $300 drain cleaning customer who calls twice a year for 5 years and refers one friend is worth $3,600, not $300. This changes everything about how much you can spend to acquire customers.
Why LTV Matters for Service Businesses
Most service businesses undervalue their customers
Service businesses typically have higher LTV than product businesses because of repeat service needs. HVAC systems need maintenance, drains clog again, cars need regular service. This recurring need is your competitive advantage.
LTV Multipliers by Service Type
HVAC Maintenance
8-15x
First job value over 10 years
Plumbing
5-10x
Emergency + planned services
Dental
10-20x
Lifetime dental care
House Cleaning
20-50x
Weekly/monthly recurring
How to Increase Customer LTV
1. Increase Retention
Stay-in-touch campaigns, maintenance reminders, loyalty programs. A customer retained one more year adds a full year of value.
2. Increase Frequency
Offer maintenance plans, seasonal services, complementary services. Two visits per year vs one doubles annual value.
3. Increase Average Value
Upsells, premium options, bundled services. A 20% higher ticket compounds over the entire customer lifespan.
4. Generate Referrals
Reviews, referral programs, exceptional service. Each referral is essentially a free customer with full LTV.
Frequently Asked Questions
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