27 Business Math Formulas for Service Providers & Coaches

27 Essential Business Formulas: Price, Plan & Grow Your Service Business

Stop guessing. Start knowing your numbers.

The Service Business Formulas is a quick-reference guide containing 27 
proven formulas used by six-figure service providers to price profitably, 
plan capacity, measure marketing ROI, and scale sustainably.

Print it. Pin it by your desk. Review weekly.

✦ WHAT'S INCLUDED

All formulas come with real-world examples, step-by-step calculations, 
and actionable benchmarks:

PRICING & RATE FORMULAS (6 formulas)
→ True Hourly Rate: Calculate what you MUST charge to hit your income goals
→ Billable Hours Per Year: Know exactly how many client hours you need
→ Project Rate: Price projects with built-in profit margin
→ Rush Project Rate: How much to charge for expedited timelines
→ Monthly Retainer Rate: Price ongoing client relationships
→ Package Pricing (Value-Based): Price based on client ROI, not hours

CAPACITY & REVENUE FORMULAS (7 formulas)
→ Monthly Revenue Ceiling: Maximum you can make with 1:1 services
→ Break-Even Clients Per Month: How many clients you need just to survive
→ Revenue Needed Per Client: What each client must generate to hit goals
→ Utilization Rate: What % of your time is actually billable
→ Capacity Required for Goal: How many hours you need to work
→ Net Profit Per Client: Real money left after costs
→ Profit Margin %: Your actual profitability on each client

MARKETING & SALES ROI FORMULAS (7 formulas)
→ Client Acquisition Cost (CAC): What you spend to get each client
→ Return on Marketing Spend (ROMS): ROI on all marketing investments
→ Discovery Call Conversion Rate: % of calls that turn into clients
→ Lead to Client Rate: How many leads convert to paying clients
→ Cost Per Lead (CPL): What each lead costs
→ Email Open Rate: Track email marketing performance
→ Return on Ad Spend (ROAS): Measure paid advertising effectiveness

CLIENT VALUE & RETENTION FORMULAS (7 formulas)
→ Client Lifetime Value (CLV): Total revenue from average client
→ CLV : CAC Ratio: Healthy target is 5:1+ (yours should be much higher)
→ Payback Period: How long until the client pays for the acquisition cost
→ Retention Rate: % of clients who stay month-to-month
→ Churn Rate: % of clients who leave (target: under 5%)
→ Referral Rate: % of clients from word-of-mouth (indicator of quality)
→ Average Client Revenue (ACR): What each client is worth per month

✦ WHY YOU NEED THIS

Service providers who scale to 6 figures aren't the hardest workers—they're 
the ones who know their numbers.

Missing ONE of these formulas costs you thousands:
→ Not knowing your true hourly rate? You're likely underpricing by 40-60%
→ Not tracking CAC? You're spending blindly on marketing
→ Not calculating CLV? You don't know which clients are actually profitable
→ Not monitoring churn rate? You're replacing clients instead of growing

These 27 formulas solve all of that.

✦ HOW TO USE IT

Step 1: Download the guide (PDF format—printable, 6 pages)
Step 2: Work through the 6-month assessment (20 minutes)
Step 3: Calculate your personal numbers for each formula
Step 4: Print & post by your desk
Step 5: Review weekly, update monthly, adjust pricing quarterly

✦ REAL EXAMPLES INCLUDED

Every formula comes with real-world examples you can immediately apply:
- True Hourly Rate: Calculate your actual hourly cost
  (Example: $60K salary + $12K expenses + $18K taxes ÷ 960 billable hrs = $94/hr)
- CAC: Know your marketing budget ceiling
  (Example: $1,000 spent ÷ 5 clients acquired = $200 CAC)
- CLV : CAC Ratio: Measure profitability per client
  (Example: $18,000 CLV ÷ $200 CAC = 90:1 ratio—excellent)
- Break-Even: Exactly how many clients you need to survive
  (Example: $3,000 monthly expenses ÷ $1,500 average client = 2 clients)

✦ WHO THIS IS FOR

✓ Coaches & consultants (life, business, executive, wellness)
✓ Freelancers & service providers (design, copywriting, tech)
✓ Virtual assistants & agency owners
✓ Therapists, counselors & wellness practitioners
✓ Photographers, videographers & content creators
✓ Anyone selling time/expertise (1099 or solopreneur)
✓ Service business owners earning $25K-$500K+ annually

✦ BONUS: KEY NUMBERS CHECKLIST

The guide includes a one-page summary of the 8 Key Numbers Every Service 
Provider Should Know:
✓ Your true hourly rate (so you never underprice)
✓ Your monthly revenue goal (and exactly how many clients needed)
✓ Your capacity ceiling (maximum monthly revenue at 1:1)
✓ Your close rate (discovery calls that convert—target 30%+)
✓ Your CAC (how much you can afford to spend on marketing)
✓ Your CLV (how much each client is worth over time)
✓ Your churn rate (target under 5% monthly)
✓ Your referral rate (30%+ = great service; 50%+ = exceptional)

Ready to run your service business by the numbers?

Get the Service Business Formulas guide today. Print it, pin it, review it 
weekly. Watch your profitability shift when you stop guessing and start 
knowing.

👉 INCLUDES: 27 formulas with real examples (6-page PDF)
👉 BONUS: 8 Key Numbers checklist + assessment worksheet
👉 FORMAT: Printable PDF—pin by desk, reference anytime