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Customer lifetime value calculator for local businesses
A customer who comes back every month is worth far more than their first visit. See what a typical customer is worth to you, and what you can afford to spend to win one.
Start from an example
Examples only. Change every number to match your business.
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Get more leads for less
Flexi Local runs Google and Facebook ads for local businesses and reports cost per lead and cost per customer every month.
How to use your result
- Use your till or booking system to find average spend and how often customers return.
- Be honest about how long customers stay. Use your records, not your best customer.
- Use the 'could spend to win one' figure as a ceiling when judging ads, offers and referral rewards.
- Raise lifetime value by asking happy customers back: reminders, loyalty cards and a quick thank-you after each visit.
The sums
Lifetime value = spend per visit × visits a year × years. Lifetime profit = lifetime value × gross margin. What you could spend = lifetime profit × the share you chose.
Related free tools
- Cost per lead calculator: What each enquiry and each paying customer from your ads costs.
- ROAS calculator: Your return on ad spend, and the break-even point at your margin.
Questions about this tool
Why does lifetime value matter?
It tells you what a new customer is really worth, so you can judge whether an advert or offer that loses money on the first sale still pays off.
What if my customers only buy once?
Set visits to 1 and years to 1. Your lifetime value is then your average sale, plus any referrals, which this calculator doesn't count.

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