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Institute for Advisors

Client LTV Calculator

Determine the true Lifetime Value of a client to establish a mathematical ceiling for your Client Acquisition Cost (CAC).

Variables

The percentage of clients who stay year over year (Industry avg: 95%).

Revenue remaining after advisor payouts and overhead.

Estimated LTV

$
Annual Revenue / Client: $
Expected Lifespan: Years

Assumptions & Methodology

This simplified model calculates static LTV. It does not account for market appreciation, annual contributions, or discount rates. Formula: (Annual Rev * Margin) / Churn Rate.

Once you know your LTV, a standard B2B SaaS rule of thumb is a 3:1 LTV:CAC ratio. Read our guide on Marketing Spend Benchmarks to see how RIAs compare.