What’s a new customer worth?
Use this free customer value calculator to compare the cost of winning a customer with their estimated first-year contribution. Built for local business owners by 318 Digital Marketing.
Start with the example or enter your own numbers. You’ll get an estimate and practical analysis—no signup required.
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Your numbers. A clearer next step.
- First-year contribution per customer
- Cost to acquire one customer
- New customers needed to cover monthly marketing
- First-year contribution from this month’s new customers, minus marketing spend
This compares one month’s acquisition spend with estimated first-year contribution from customers acquired that month. It is not monthly profit or a cash-flow forecast. Repeat purchases may occur later; overhead, taxes, retention changes, refunds, and financing costs are excluded.
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How the calculator works
First-year contribution per customer = average sale × contribution margin × purchases per year. Customer acquisition cost = monthly marketing spend ÷ new customers attributed to that marketing. Customers needed to cover marketing = spend ÷ first-year contribution per customer, rounded up.
A $250 average sale, 40% margin, and two purchases per year produces $200 in first-year contribution per customer. Spend $600 to bring in five customers and your acquisition cost is $120. Three customers would cover that spend using their estimated first-year contribution.
Put the estimate to work
If acquisition cost is close to customer contribution, review your direct costs, pricing, repeat business, and marketing performance. If it is comfortably below contribution, check cash flow and capacity before increasing spend. These numbers are a starting point, not a promised return.
Frequently asked questions
Is this lifetime customer value?
No. This tool uses a one-year estimate. Lifetime value needs a reliable estimate of how long customers stay and how their purchases change over time.
What if I don’t know my margin?
Subtract the direct costs of delivering a typical sale from its price, divide by that price, and multiply by 100. Include relevant materials and direct labor. Try several realistic margins to see how the result changes.
What if I can’t attribute new customers to marketing?
Treat your customer count as a scenario, not a measured result. Ask customers how they found you and track qualified inquiries through to completed sales. Avoid assigning the same customer to multiple campaigns.
Does this tell me what I can afford to spend?
It estimates a break-even point before overhead. Your actual budget also depends on cash flow, timing, capacity, overhead, and the profit you want to keep.
Got numbers. Got big ideas?
Let’s build a plan around them. Or explore more free business resources.