Free Tool

Customer Lifetime Value Calculator

Calculate the total revenue and gross profit a typical customer brings over their lifetime. Then back into the most you can spend to acquire one.

Enter your numbers

$50$350$3,000
14 visits/yr52
13 years15
20%55%80%
00.55

Customer lifetime value (revenue)

$4,200

$2,310

gross profit (LTV)

$6,300

LTV + referral value

$770

max acceptable CAC (3:1 LTV:CAC)

Know your numbers. Spend with confidence.

Kairvio's reports show your real LTV by customer, lead source, and channel — so you know what to spend on Google, Facebook, and direct mail.

Start Free Trial

How to use these numbers

The two numbers that matter most:

  • Gross profit LTV — what a customer is actually worth to your business after direct costs.
  • Max acceptable CAC — the most you can pay to acquire a new customer and still hit a healthy LTV-to-CAC ratio.

The 3:1 LTV-to-CAC ratio is the standard benchmark — for every $1 you spend acquiring a customer, you should be making $3 in gross profit over their lifetime. Below 3:1 means you're spending too much on marketing. Above 5:1 means you're probably under-spending and leaving growth on the table.

Most service businesses massively under-estimate LTV because they only count the first job. Once you factor in repeat visits, recurring contracts, and referrals, the real number is often 3–5x what owners assume. That changes how aggressive you can be on Google Ads, Local Service Ads, and direct mail.

For more on customer acquisition, read how to get more leads for your service business.