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Lawn Mowing Lifetime Customer Value Calculator: LTV & CAC

Published on November 23, 2024 By Brett Lindenberg

This calculator will help you understand the true lifetime value (LTV) of lawn mowing customers and determine customer acquisition costs (CAC) you could anticipate in this business.

Lawn Mowing Customer Value Calculator

Calculate the lifetime value and acquisition costs for your lawn mowing customers

$
%
25
%

Results

Lifetime Value (Gross)

$5,625.00

Total revenue expected from a customer over their lifetime

Lifetime Value (Net)

$2,812.50

Total profit expected from a customer over their lifetime

Customer Value per Year (Gross)

$1,875.00

Annual revenue per customer

Customer Value per Year (Net)

$937.50

Annual profit per customer

Annual Mowing Revenue (Gross)

$93,750

Total annual revenue based on goal customers

Annual Mowing Revenue (Net)

$46,875

Total annual profit based on goal customers

Target LTV Customer Acquisition Cost

$703.13

Maximum recommended spending to acquire a customer based on lifetime value

Target Yearly Customer Acquisition Cost

$234.38

Maximum recommended spending to acquire a customer based on yearly value

How this Calculator Works

The default settings on this calculator were built with real-world numbers provided by Nolan Gore on X, who owns Top Choice Lawn Care in Austin, Texas. Nolan’s business does more than $6 million in annual revenue, so he knows what he’s talking about when it comes to running a successful landscaping business.

Understanding the Inputs

  • Average Mow Price ($): This is how much you charge for a typical mow. The default is $75, but enter your actual average price.
  • Gross Margin (%): This is the percentage of your mowing revenue left after direct costs (labor, fuel, equipment costs). The default is 50%.
  • Average Number of Mows per Year: How many times you mow each customer’s lawn in a typical year. The default is 25, assuming a typical mowing season.
  • Average Retention (months): How long customers typically stay with your service. The default is 36 months (3 years).
  • Desired Customer Acquisition Cost (CAC) (%): The percentage of your customer’s lifetime net value you’re willing to spend to acquire them. The default is 25%.

I set the default at 25% based on input from Jon Matzer, who suggested using 20%–30% customer acquisition costs for any risks or indirect costs.

Understanding the Calculations

Here’s how the calculations work in this tool:

  1. Yearly Value Calculations:
    • Yearly Gross = Mow Price × Mows per Year
    • Yearly Net = Yearly Gross × (Gross Margin ÷ 100)
  2. Lifetime Value Calculations:
    • Lifetime Years = Retention Months ÷ 12
    • Lifetime Gross = Yearly Gross × Lifetime Years
    • Lifetime Net = Yearly Net × Lifetime Years
  3. Target Customer Acquisition Cost (CAC):
    • Lifetime CAC = Lifetime Net × (Desired CAC % ÷ 100)
    • Yearly CAC = Yearly Net × (Desired CAC % ÷ 100)

I added yearly and lifetime desired CAC outputs to this tool. If you want to be super conservative with your marketing budget, you could use the yearly CAC number to hit return on ad spend numbers in just 12 months.

Top Choice Lawn Care Staff
Top Choice Lawn Care serving Austin, Texas.

What’s the True Potential Value?

Credit to Nolan Gore for starting an eye-opening conversation about the real value of lawn care customers. At first glance, the math looks straightforward with the average lifetime value of a mowing customer sitting at $2,812.50.

But when you dig in, you realize mowing could just be the foot in the door. The real money? It’s in the extras like:

  • Fertilization plans: $200–$600/year
  • Weed control plans: $300–$500/year
  • Seasonal cleanup: $200–$400/year

Keep in mind that a single upsell can transform a customer’s lifetime value from "not bad" to "pretty sweet." Keep this in mind when planning this business.

The True Value of a Customer

Here’s how the math changes when you factor in realistic upsells and repeat business using a hypothetical example:

Year 1:

  • Mowing: $937.50
  • Fertilization: $400
  • Fall cleanup: $300
  • Total: $1,637.50

Year 2:

  • Mowing: $937.50
  • Fertilization: $400
  • Fall cleanup: $300
  • Irrigation repair: $500
  • Total: $2,137.50

Year 3:

  • Mowing: $937.50
  • Fertilization: $400
  • Fall cleanup: $300
  • Landscape redesign: $3,000
  • Total: $4,637.50

Example Customer Value with Add-on Services: $8,412.50

Running a Lawn Care Business Ain't Easy!

Running a lawn mowing business is a proven business model, and there’s nothing like turning neatly trimmed grass into cold, hard cash.

But let’s keep it real… This is not an easy business to scale. Profit margins are often 5%–20% per job, employees are expensive and take time to train and manage, and mastering services like landscaping and irrigation takes more than a YouTube crash course.

branded landscaping vehicle
Landscaping vehicles like this don’t come cheap. They require real investment for every new piece of equipment you add to the business.

Add to that the cost of equipment that breaks down at the worst possible moment, and it’s clear this gig isn’t all sunshine and freshly cut lawns.

So, as you plug numbers into this calculator, keep in mind you’re not just building a business—you’re signing up for a juggling act of skills, expenses, and maybe a few headaches. But hey, if you’ve got the grit (and a good sense of humor), this business just might grow into something amazing.

Brett Lindenberg

Brett Lindenberg

Brett Lindenberg is the co-founder of BackofNapkin.co. Brett has interviewed hundreds of entrepreneurs, gathering their stories and extracting the insights behind successful startups big and small. His passion lies in making startup calculations accessible so every dreamer has the numbers they need to take the leap. At home, Brett enjoys life’s best calculations: quality time with his wife and two daughters.

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