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Client Lifetime Value Calculator

Short answer: client lifetime value = average spend per visit × visits per year × years a client stays. Multiply by your profit margin to see what a client is worth in profit, and divide by what you pay to win one to check your marketing. Everything is calculated in your browser and nothing is saved or sent anywhere.

What small improvements do to a client's value

How to use your result

1. Set your marketing budget from it. If a client is worth $800 in profit, spending $40 to win one is a bargain. Without the number, many owners under-spend.
2. Check the ratio. Aim for lifetime profit of at least 3 times the cost to win a client. Under 1 means each new client loses you money.
3. Pick the easiest lever. Rebooking before the client leaves, a small add-on or a simple loyalty reward usually beats finding brand-new clients.
4. Re-run it each quarter with real numbers from your booking system or till.

Common lifetime value mistakes

• Guessing years too high. Count from your real booking history. If most clients vanish after two visits, your average is under a year.
• Using revenue instead of profit. Revenue makes every client look like a goldmine.
• Ignoring the cost to win a client. Include discounts, free first visits and the hours you spend, not only ad spend.
• Treating every client the same. Your best 20% of clients are often worth several times the average. Track them separately.

Frequently asked questions

What is client lifetime value (CLV)?

It is the total profit you can expect from one client over the whole time they keep buying from you. Instead of looking at one appointment or one order, it shows what a client is worth across months or years.

How do I calculate client lifetime value?

Multiply the average amount a client spends per visit by the number of visits per year, then by the number of years they stay with you. For a profit figure, multiply that by your profit margin. For example, $60 x 8 visits x 3 years = $1,440 in revenue, or about $864 at a 60% margin.

What is a good lifetime value to acquisition cost ratio?

A common rule of thumb is that lifetime profit should be at least three times what it costs you to win the client. Below 1:1 you lose money on every new client. Above 5:1 you may be under-investing in marketing.

How can I increase client lifetime value?

There are three levers: raise the average spend (add-ons, packages, price rises), increase visit frequency (rebooking at the till, reminders, memberships) and keep clients longer (follow-up, loyalty rewards, asking for feedback). Even a small gain in each one multiplies.

Should I use revenue or profit?

Profit is the safer number because it is what is left to pay for marketing and to pay you. Use your margin after product costs, card fees and supplies, not after rent or your own wages.

Is this calculator tax or accounting advice?

No. It is a planning estimate from the numbers you enter. Sales tax / VAT and income tax are not included, so check with an accountant or the IRS / HMRC guidance.