Most home-service businesses live on one-off jobs: a repair today, an install next week, then back to zero. Every month the counter resets and you have to sell all over again. Recurring revenue breaks that cycle. An annual maintenance plan turns a customer who called you once a year into a source of predictable revenue that arrives on its own, renewal after renewal.
This calculator puts a number on that opportunity. Adjust your figures above and you'll see, in real time, how much recurring revenue your customer base can generate and how much of your revenue becomes predictable.
How to read the results
- Recurring revenue per year (ARR) is the headline number: the revenue that renews itself every year thanks to the plan, with no need to sell again.
- Recurring/month (MRR) translates that ARR into a monthly rhythm, useful to compare against your fixed costs.
- Recurring over retention projects the ARR across the years an average customer stays on the plan: the total value the recurring relationship captures.
- Predictable share of revenue is the percentage of your total revenue that no longer depends on landing a new customer every month.
Why maintenance plans are worth so much
A maintenance plan does three things at once. First, it smooths cash flow: instead of relying on the phone every morning, you know part of the month's revenue is already committed. Second, it lifts retention: a customer on an active plan has a reason to stay with you and not call a competitor when something breaks. Third, it multiplies referrals, because a customer who sees you show up every year for the tune-up recommends you more naturally.
The effect of retention on profit is measured. The classic Bain & Company research by Fred Reichheld, reported by Harvard Business Review, estimated that raising customer retention by 5% can increase profit by 25% to 95%. A recurring plan is one of the most direct ways to raise that retention in home services.
How to price and sell the plan
The most common mistake is pricing the plan too cheap out of fear that no one will buy. A plan that loses money is not an asset, it's a liability. Set a price that covers the cost of the scheduled visit plus a healthy margin, and include only what genuinely adds value: priority on emergencies, an annual tune-up, a small discount on repairs.
The moment to sell the plan is right after a job done well, when trust is at its highest. Don't pitch it by cold email; offer it in person, as you close out the invoice, explaining that it prevents breakdowns and gives them priority. The conversion page explains how to turn that moment of trust into a sale, and the customer aftercare and repeat revenue guide covers how to systematize follow-up after the job.
The predictability dividend
The most valuable part of a recurring plan isn't the money from the plan itself: it's what predictable revenue lets you do. With a recurring base you can plan hiring without fear, invest in marketing with a clear head, and sleep better in the slow season. The operations page explains how a predictable base changes the way you run the business. And if you want to see the total value of each customer over time, pair this tool with the customer lifetime value calculator.
What to do with the number
If the ARR figure surprised you, the next step is to design a simple plan you can offer starting tomorrow, not a complex program you never launch. Explore the rest of the tools to size up the rest of your business, and if you want to design your maintenance plan with your real numbers on the table, let's talk.