Free customer lifetime value (LTV) calculator
Estimate the revenue a customer may bring over time.
Enter average job value, jobs per year, and years retained to calculate customer lifetime value. The result is revenue, not profit.
Your estimate · updates instantly
$1,500.00
Estimated lifetime customer revenue
- Annual customer revenue
- $500.00
- Lifetime revenue
- $1,500.00
Average job value × jobs per year estimates annual revenue. Multiply by years retained for lifetime revenue. This is not profit.
This is estimated revenue, not profit. The example values are illustrative, not industry benchmarks.
This calculator uses only the values entered here. Editing inputs does not send them to a server.
Customer lifetime value formula
Customer lifetime value (CLV or LTV) estimates the total revenue one customer brings over the time they keep booking with you. For a service business, three averages are enough.
CLV = average job value × jobs per year × years retained
Example only, not a benchmark
- Average job value 250, 2 jobs per year, 3 years retained.
- Annual revenue: 250 × 2 = 500.
- Lifetime value: 500 × 3 = 1,500.
For a profit-based figure, multiply the result by your average gross margin. This calculator shows revenue.
How to calculate customer lifetime value
- Find your average job value from recent invoices.
- Count how many jobs a typical repeat customer books each year.
- Estimate how many years a typical customer keeps booking with you.
- Multiply the three numbers. Use your own records for each input.
LTV vs CLV
LTV (lifetime value) and CLV (customer lifetime value) usually mean the same thing, and many teams use the terms interchangeably. Some define LTV as profit and CLV as revenue, so check which one your team means before comparing numbers.
Customer lifetime value calculator questions
Use your own records and assumptions. Examples are illustrative and results are not guarantees.
- How do you calculate customer lifetime value?
- Average job value × average jobs per year × average years retained. Annual customer revenue is average job value × jobs per year, and lifetime value multiplies that by the years a customer stays.
- What is the customer lifetime value formula?
- CLV = average job value × jobs per year × years retained. This calculator uses that revenue-based formula. For a profit-based figure, multiply the result by your average gross margin.
- What is the difference between LTV and CLV?
- LTV and CLV both mean customer lifetime value, and many teams use them interchangeably. Some teams reserve LTV for a profit-based figure. This calculator shows revenue, so check which definition your team uses.
- Is this customer lifetime value profit?
- No. This calculator estimates revenue, not profit. It does not subtract labor, materials, overhead, acquisition costs, or taxes.
- Can jobs per year and years retained be averages?
- Yes. Fractional values are allowed because they can represent averages across many customers.
- Are the sample values industry benchmarks?
- No. They are illustrative examples only. Use your own average job value, booking frequency, and retention period.
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