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Customer Lifetime Value Calculator

Almost every marketing decision — what to bid, what to spend on reviews, whether a £495 retainer is cheap or dear — quietly depends on one number: what a customer is worth over their lifetime with you. This calculator works it out both ways: by average retention, or from your churn rate.

At a glance

What it does, what it reads, what it cannot see

Every tool on this site states its scope in the same six lines, so you know what a result means before you act on it.

You enter
Average transaction, transactions a year, years retained and gross margin (or annual revenue and churn)
You get
Lifetime revenue and lifetime gross profit per customer
It reads
Nothing beyond the form
It cannot see
How long customers really stay; take that from your records, not a guess
It takes
Instant
Worked example

This tool’s own output on a fictional business

Generated by the tool at build time
Patient
£95 per visit · 2.5 visits a year · 6 years · 60% gross margin
£1,425Revenue over the relationship
£855Gross profit over the relationship

How to read it

£1,425 of revenue is the figure that gets quoted; £855 of gross profit is the one that can pay for acquiring the patient. The six years is the assumption doing the work here, and it is usually guessed high: take it from your own records (how many of the patients who joined six years ago are still on the books) rather than from a feeling.

Meadowbank Dental is a fictional practice written for these examples: the result above is what this tool’s code produces on that page, regenerated whenever the site is built, and is not a real business’s data.

How it works

What this tool measures, and what it leaves alone

Read this before you act on a result. Every tool here states its method and its limits in the same breath.

Revenue LTV lies; profit LTV decides

The LTV that matters for spending decisions is gross-profit LTV — what a customer contributes after the direct cost of serving them. A £720 revenue LTV at 50% margin is £360 of actual capacity to fund acquisition and profit. Compare marketing costs against that number, never the revenue one.

The churn model suits memberships and retainers: at 20% annual churn the average customer stays five years (1 ÷ 0.20), so annual profit × 5. Both models assume the future resembles the past — sensible for planning, not gospel.

Questions

Common questions

Why does LTV change what I can spend on marketing?

Because a business that knows a customer is worth £360 in profit can cheerfully pay £100 to acquire one, while a competitor pricing acquisition against a single £60 sale cannot compete for the same attention. Knowing your LTV is a bidding advantage in itself.

Related

Free tools that go with this one

Each one measures rather than guesses, works without an account, and says so when something cannot be measured.

Max CAC

"How much should I spend on marketing?" is really "how much can I pay for one customer and still profit?" This calculator answers it two ways — the cautious ceiling (profit on the first purchase alone) and the growth ceiling (profit across the customer lifetime) — with your target margin built in..

Marketing ROI

Most small businesses judge marketing on revenue, which quietly flatters every campaign — because revenue ignores what the goods and the marketing cost.

Ads Break-Even

Google will happily sell you clicks at any price; whether those clicks make money depends on numbers Google does not know — your conversion rates and margin.

If you need more than the tool

Knowing what a customer is worth sharpens every spending decision — including whether a one-off £295 investigation into why your website loses enquiries pays for itself.

Free Snapshot

Not sure the findings matter? A person checks your website and sends three specific, evidenced fixes — free, no call, no obligation.

Website Revenue Audit — £295

The full picture: up to ten pages and your customer journey checked by a person, every finding evidenced, every fix written so you or your developer can do it.

Repair Sprint — £795

No developer, no time, no interest in doing it yourself? The audit plus up to twelve fixes implemented for you, with a full change log.

And when the whole system needs rebuilding — website, trust evidence, local and AI visibility together — the founder-led HighRegard Authority Transformation (£7,495, 8 weeks, application only) is the complete version.

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