Lifetime Client Profit Calculator
Understand the true profit per client after labour efficiency, payment terms, and over a full client lifetime.
1. Firm Settings
Employer NIC, pension, etc.
Your firm’s floor ratio
Net profit margin goal
Expected retention in years
2. Client Revenue & Margin
Total annual fees billed to this client
Revenue minus direct costs as a %
3. Labour Efficiency Ratio
How efficiently does revenue convert to gross profit relative to staff cost? Higher is better.
4. Payment Terms
Using your target profit margin (20%) as the opportunity cost. Every pound tied up in a slow-paying client is a pound not earning 20% inside your business. This is the honest rate for an SME owner — what the capital actually costs you in forgone profit.
Average days to payment from invoice
Your agreed or ideal terms
LER Analysis
Payment Terms Cost
True Client Profit
Annual profit after labour & payment costs —Lifetime Client Value
Total profit over client lifetime —