Client Lifetime Value

Calculate the true LTV of each client type so you know exactly how much to spend acquiring them.

First-year revenue per client $15,000

Annual retention rate 70%

Annual revenue growth per client 12%

Gross margin 70%

Discount rate 10%

Lifetime client value

Discounted gross profit per client

Average client lifespan

Max sustainable CAC

Revenue per client by year

💡 LTV insight

Client Lifetime Value Calculator

The Client Lifetime Value Calculator quantifies the discounted gross profit you should expect from each new freelance client based on retention, growth, and your margin. You enter the first-year revenue per client, your annual retention rate, the typical year-over-year revenue growth on existing clients, your gross margin, and a discount rate to bring future cash flows to present value. The calculator returns the lifetime value, your average client lifespan, and the maximum customer acquisition cost you can sustain at a healthy 4:1 LTV-to-CAC ratio. Use it before deciding how much to spend on acquisition channels. A client worth fifty thousand dollars over four years can absorb twelve thousand dollars in acquisition spend and still leave room for healthy margins.