Client Lifetime Value
What is each client
actually worth?
Most operators undervalue retention because they've never seen the compound math. Three inputs, one number that changes how you think about acquisition.
Client Lifetime Value
Acquisition Ratio
Max Acquisition Spend
per client and still profit
Gross vs Net Lifetime Value
Gross CLV
total revenue
Net CLV
after delivery costs
The Acquisition Gap
Retention Leverage
What This Means
Want these numbers in your inbox? Useful for budgeting acquisition spend.
How do you calculate client lifetime value?
Client lifetime value is the total revenue a client brings in over the whole relationship: average monthly revenue times the number of months they stay. Add your monthly cost to serve and this calculator shows net value too, then compares it with a typical acquisition cost for your industry and caps safe acquisition spend at one third of CLV.
How do I read my client acquisition ratio?
The ratio divides your lifetime value, net if you entered costs, by a typical acquisition cost for your industry. 5:1 or higher reads Excellent return on acquisition, 3:1 Healthy acquisition economics, 1.5:1 Thin margin on acquisition, and below that Below breakeven on acquisition.