MarginWorkshop
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ResourcesBusiness Profile
Sales & Customer Economics

Recurring Contract Value

Find the real lifetime value of a recurring contract or membership, after direct service cost and admin overhead, for any trade.

Lifetime value$3,040
Annual direct margin$760
Lifetime revenue$4,800
Annual margin %63.3%

Shared fields save automatically as you edit them. Review or edit everything in one place in your Business Profile, so every engine starts pre-filled.

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Methodology

Formula: annual direct margin = contract price - (service cost per visit × visits) - (contract price × admin overhead %). Lifetime value = annual direct margin × expected tenure years.

Assumption: admin overhead defaults to 10% of contract price, an editable assumption.

Limitation: this is the cross-trade general version. For pricing a new HVAC or plumbing maintenance agreement from scratch, the trade-specific engines already do that with trade-calibrated defaults.