This calculator estimates the total profit you'll earn from a typical client over the entire relationship, accounting for monthly revenue, lifespan, margins, and upsells.
Purpose:
This calculator estimates the total profit you'll earn from a typical client over the entire relationship, accounting for monthly revenue, lifespan, margins, and upsells. Enter average monthly revenue per client, typical client lifespan, gross margin, acquisition cost, and annual upsell rate. The calculator shows lifetime value, LTV:CAC ratio, and payback period.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access.
- Update with actual retention and upsell data
- Calculate for different client segments
- Use to set marketing budget limits
- Track changes over time
Understanding Basics:
Client lifetime value (LTV) is the total profit from a client minus acquisition cost. The LTV:CAC ratio should be at least 3:1 for healthy unit economics.
Benefits for SMEs:
- Set appropriate client acquisition budgets
- Understand the true value of retention
- Justify investment in client success
- Compare acquisition channels effectively
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