Free Calculator

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.

Your business numbers — results update instantly as you type.

Revenue and Frequency

Average revenue per visit

Typical invoice per service call or recurring maintenance visit.

Visits per year

How many times the average customer uses the service annually.

Annual revenue per customer

$330/yr

Retention and Margin

Annual retention rate

Percentage of customers who return each year. A jump from 70% to 85% often doubles LTV.

Annual churn rate

22.0%

Gross margin on service revenue

Margin after direct labor and materials costs.

Acquisition

Customer acquisition cost

What the business spends to bring in a new customer (ads, referral incentives, marketing).

Target LTV-to-CAC ratio

Used to calculate the maximum sustainable acquisition spend. Above 3x is strong.

LTV Results

LTV per customer

$630

Annual gross profit / churn rate

Annual gross profit per customer $139/yr

Average customer lifespan 4.5 years

Net LTV (after CAC) $450

LTV-to-CAC ratio 3.5x

Max sustainable CAC at target ratio $210

Total LTV base across customer base

customers

Total LTV base

$315,000

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

Improve customer LTV with Claver

Claver tracks visits, retention, and revenue per customer so the LTV calculation is based on real data from the customer base rather than estimates. When the retention rate drops on a segment, the report surfaces it before those customers churn. Agreement renewal reminders, automated follow-up sequences, and per-customer revenue history all contribute to the LTV numbers the business can show a lender or acquirer.

Start tracking LTV with Claver →

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Customer LTV calculator — FAQ

How do I calculate customer lifetime value for a service business?

Multiply the average revenue per visit by the number of visits per year to get annual revenue per customer. Multiply by your gross margin to get annual profit per customer. Then divide by the annual churn rate (one minus the retention rate) to get the lifetime value, or multiply by the estimated average years of the relationship for a simpler estimate.

Is this calculator really free?

Yes, the customer LTV calculator is free with no signup, no credit card, and no data stored on a server, so the revenue and retention numbers stay on the device.

What is a good customer retention rate for a service business?

Retention rates vary significantly by trade and service model. Residential lawn care and pool service companies with recurring agreements retain 80 to 90 percent of customers annually. One-time service businesses (plumbing, electrical emergency calls) naturally retain less, but proactive follow-up and maintenance agreement offers can push rates toward 50 to 60 percent.