Compare the work you have promised with the recurring revenue it will bring. Start with a completed job sheet, supplier quotes and a crew schedule. Each example below uses hypothetical values you can replace.
Retainer Delivery Hours Available
Set a delivery-hour envelope for a recurring client agreement.
Available hours = (retainer × (1 − margin) − other delivery costs) / hourly cost
Show example inputs and result
| Monthly retainer fee | 3,000 |
|---|---|
| Non-labour monthly delivery cost | 300 |
| Target contribution margin | 40 % |
| Loaded delivery hourly cost | 45 |
Result: 33.3333 hours per month.
A negative answer means other costs already exceed the chosen cost envelope. Fixed overhead is not included unless entered.
Open retainer delivery hours availableService Plan Contribution
Check contribution from a recurring service package.
Annual contribution = plan fee − visits × visit cost − admin cost
Show example inputs and result
| Annual plan price | 360 |
|---|---|
| Included visits per year | 2 |
| Variable cost per included visit | 90 |
| Annual member admin cost | 20 |
Result: 160 per member per year.
Treat uncertain upsells separately. First test whether the committed included service covers its own costs.
Open service plan contributionAnnual Plan Discount Ceiling
Check how much annual prepayment discount the delivery economics can support.
Maximum discount = (1 − annual cost / ((1 − margin) × monthly price × 12)) × 100
Show example inputs and result
| Monthly customer price | 100 |
|---|---|
| Annual delivery and support cost | 600 |
| Required annual margin | 30 % |
Result: 28.5714 %.
This margin test excludes the value of earlier collection. A negative ceiling means the undiscounted price misses the target.
Open annual plan discount ceilingRenewal Revenue Scenario
Model renewal revenue from an eligible customer cohort.
Renewal revenue = eligible customers × renewal rate × fee
Show example inputs and result
| Customers eligible for renewal | 200 |
|---|---|
| Renewal rate | 80 % |
| Renewal fee per customer | 300 |
Result: 48,000 .
Use only customers actually eligible in the selected period, and keep new sales separate from renewals.
Open renewal revenue scenarioContribution Lifetime Value
Estimate steady-state contribution lifetime value under constant churn.
Approximate LTV = monthly revenue × contribution margin / monthly churn rate
Show example inputs and result
| Monthly revenue per active customer | 120 |
|---|---|
| Contribution margin | 50 % |
| Monthly customer churn | 5 % |
Result: 1,200 per customer.
Small or changing cohorts, zero churn, changing spend, and seasonal retention can make the constant-rate estimate unreliable.
Open contribution lifetime valueChurn Reduction Value
Estimate one-period contribution associated with lower churn.
Additional contribution = starting customers × (old churn − new churn) × contribution
Show example inputs and result
| Starting customer cohort | 500 |
|---|---|
| Current period churn | 8 % |
| Scenario period churn | 5 % |
| Next-period contribution per retained customer | 100 |
Result: 1,500 .
No. This tool uses one-period contribution. Future retained spending should be modeled over its own timing.
Open churn reduction valueUse the results in your plan
For a plumbing service business, review fittings, access time, and travel across the complete workflow. Use one consistent period and delivery unit: a service visit. Compare the assumptions with recorded outcomes after delivery, then update the estimate.
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