Electrical
Electrical Customer Lifetime Value Calculator
Estimate relationship gross profit from repeat electrical work, retention and an explicit referral assumption.
Result
Gross profit, not revenue, because revenue you spend delivering the work is not available to spend winning customers. Referrals are the least reliable input here; measure yours rather than assuming.
Get a Free Business AuditWhat moves the number
- Frequency should reflect completed jobs rather than the number of customer contacts.
- Retention years describe an assumption about repeat business.
- Referral value depends on genuinely additional customers, not duplicated attribution.
Where this one goes wrong
This is an undiscounted relationship estimate. It does not guarantee that future work arrives or deduct every cost of staying in contact. A commercial maintenance customer and a one-time home renovation buyer need separate assumptions.
Questions
About this calculator
What if most homeowners only book once?
Model that experience rather than borrowing a recurring-service pattern. The value of the first job may be most of the economic relationship.
Can I spend the entire lifetime figure to acquire someone?
That would ignore timing, overhead and uncertainty. Test acquisition spending against cash available and observed retention, not only a distant gross-profit total.
How do I validate the referral entry?
Track attributable new customers over a defined period. Counting every recommendation as a paying customer overstates the benefit even if customers are pleased with the work.
The formula
lifetime value = average job x jobs per year x years x gross margin
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Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Average job value ($). Enter your own figure; the page starts at $540.
- Jobs per customer per year. Enter your own figure; the page starts at 1.4.
- Years they stay. Enter your own figure; the page starts at 6.
- Gross margin (%). Enter your own figure; the page starts at 47%.
- Customers they refer. Enter your own figure; the page starts at 0.4.
The result updates as you type, so you can try a figure, see what it does to lifetime gross profit, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Average job value | $540 |
| Jobs per customer per year | 1.4 |
| Years they stay | 6 |
| Gross margin | 47% |
| Customers they refer | 0.4 |
What comes out
| Result | Value |
|---|---|
| Lifetime gross profit main result | $2,132 |
| Lifetime revenue | $4,536 |
| Including referred customers | $2,985 |
| Gross profit per year | $355.32 |
One customer is worth $2,132 of gross profit over 6 years, or $2,985 once the people they refer are counted. That is what you can afford to spend winning one.
How sensitive the answer is
Holding everything else steady and changing only average job value, this is what happens to lifetime gross profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average job value ($) | Lifetime gross profit |
|---|---|
| $270 | $1,066 |
| $405 | $1,599 |
| $540 example above | $2,132 |
| $810 | $3,198 |
| $1,080 | $4,264 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Average job value ($)
- A money amount, starting at $540.
- Jobs per customer per year
- A number, between 0 and 60, starting at 1.4.
- Years they stay
- A number, between 0 and 60, starting at 6.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 47%.
- Customers they refer
- A number, between 0 and 20, starting at 0.4.
What the results tell you
| Result | What it is |
|---|---|
| Lifetime gross profit | The headline result. A money figure. |
| Lifetime revenue | A money figure. |
| Including referred customers | A money figure. |
| Gross profit per year | A money figure. |
Before you rely on this number
Conductor sizing, voltage drop and load figures are governed by code, and the code takes precedence over any calculator. Ambient temperature, conduit fill, continuous load factors and the specific installation all change the answer. Treat this as a first pass, not a design.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.