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//// Business · Client Economics

Client Lifetime Value Calculator

LTV:CAC below 1× means you're paying to acquire clients who don't pay back. Enter your numbers to see the health rating, payback period, referral bonus, and a retention sensitivity table.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Client economics

What a typical client pays you per month

$

Revenue minus direct costs (subcontractors, tools, etc.)

%

How many months a typical client stays

mo

Marketing, outreach, sales time to land one client

$

% of clients who refer at least one new client

%

How many referrals a referring client typically sends

Gross LTV$20KLifetime gross profit
Net LTV$19KAfter acquisition cost
LTV:CAC24.4xTarget: 3× or higher
Payback Period0.5 moMonths to recover CAC
Excellent24.4x LTV:CAC

LTV:CAC above 5x — strong unit economics. Each new client generates well over 5× their acquisition cost. Scale confidently.

Lifetime revenue breakdown per client

Total Revenue
$30K
Direct Costs
$11K
Gross Profit (LTV)
$20K
Referral Bonus
$2K
Referral-adjusted LTV: $21K(20% referral rate × 1 avg referrals)

How retention affects LTV

ScenarioRetentionGross LTVNet LTVLTV:CAC
−50% retention6.0 mo$10K$9K12.2x
−25% retention9.0 mo$15K$14K18.3x
Current12.0 mo$20K$19K24.4x
+25% retention15.0 mo$24K$24K30.5x
+50% retention18.0 mo$29K$28K36.6x