Customer Lifetime Value (LTV) Calculator
Estimate the long-term value of a new customer. Factor in repeat business, maintenance plans, and referrals to see why acquiring customers is an investment.
Your Numbers
Initial Acquisition
Retention & Recurring
Upsells & Referrals
Results Analysis
What this means:While a customer is initially worth $2,500 in profit, their actual lifetime value to your business over 5 years is $4,900 in gross profit, driven by maintenance, repeat work, and referrals.
Compare Against Contractor Planning Ranges
Planning ranges, not guarantees. Benchmarks vary by market, season, trade, offer, ad platform, service mix, and sales process. Use your own CRM, call tracking, accounting, and ad platform data where possible.
Cost Per Qualified Lead
Depends on season and market.
Lead-to-Booked Rate
Varies by speed-to-lead.
Estimate Close Rate
Impacted by in-home sales skills.
Average Job Value
Blended service vs. replacement.
Gross Margin
Targeting 50%+ is ideal.
Related Calculators
Explore other tools to optimize your home service business.
Seasonal Demand Forecaster
Forecast your leads, booked estimates, and capacity gaps based on seasonal demand multipliers in HVAC, plumbing, and roofing.
Lead Response Time ROI
Estimate how much revenue you can gain by improving your speed-to-lead and booking rates. A crucial metric for local service contractors.
Billboard vs. Digital Ad ROI
Compare the estimated cost per lead, booked estimate, and ROI of traditional billboard advertising versus digital ad spend.
Frequently Asked Questions
LTV changes how you view marketing. If a customer is worth $1,000 on day one but $4,000 over 5 years, you can afford to spend much more to acquire them initially. It shifts marketing from an expense to an investment.
Maintenance plans create recurring revenue and guarantee you are the first call when a major replacement is needed. They significantly extend the 'Years Retained' and 'Additional Jobs' metrics.
Yes. Highly satisfied customers become an acquisition channel. If 1 in 10 customers refers a friend who buys a $10,000 system, that original customer is mathematically worth an extra $1,000 in revenue.