What's a Customer Actually Worth?
Most business owners only think about the first sale. This calculator shows you the full picture, including repeat business and referrals.
A single customer is worth
$0
over their lifetime
First sale only
$0
True lifetime value
$0
That's 0x more than the first sale alone!
Value breakdown:
What you can afford to spend
Based on a typical 10% acquisition cost rule, you could spend up to $0 to acquire a new customer and still be profitable.
Ready to acquire more high-value customers?
Book a Free Strategy CallThese calculations are estimates. Actual customer lifetime value varies based on retention efforts, service quality, and market conditions.
Why Customer Lifetime Value Changes Everything
Most business owners look at a new customer and see a single transaction. A plumber sees a $500 job. A dentist sees a $200 check-up. But that's not the full picture.
When you understand the true lifetime value of a customer, including repeat business and referrals, it completely changes how much you can afford to spend on marketing.
A real example
Let's say you're a plumber. Your average job is $500. If you think that's all a customer is worth, you might hesitate to spend $100 to acquire them, that's 20% of the job value!
But consider this:
- That customer calls you again next year for another job ($500)
- They stay with you for 5 years ($2,500 total)
- They refer one friend who also becomes a customer ($2,500 more)
Suddenly that customer is worth $5,000, not $500. Now that $100 acquisition cost looks like a bargain, it's just 2% of their true value.
The formula
CLV = (Avg Sale × Purchases/Year × Years) + (Referral Rate × Avg Referrals × First-Sale Value)
Use the Ad Budget Calculator to plan how much to spend based on your CLV, or check our Break-even Calculator to see how many customers you need.