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Lead cost and ROI calculator
Find out if Angi, Thumbtack, Yelp ads or your ads actually pay: what each lead costs, what each job you win costs, and what you keep.
Cost per lead is what you spend on a channel divided by the enquiries it brings; cost per job is the spend divided by jobs won. If $500 of ads brings 25 enquiries and 5 jobs, each lead cost $20 and each job $100. Compare that with your profit per job.
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Cost a job won = monthly spend ÷ (leads × win rate)
Left after the spend = jobs won × job value × gross margin − monthly spend
Use gross margin, not the job price: a $600 job that costs you most of that in materials and labour can't carry a big lead fee.
Worked example
You spend $400 a month, get 20 leads and win 25% of them: 5.0 jobs. Each lead costs $20.00 and each job won costs $80.00. At $600 a job and a 40% margin, you keep $800 a month after the spend.
Run it for every source you pay for, then compare with work that costs nothing per lead: Google reviews, repeat customers and your own website.
Questions
What is a good cost per lead?
One that leaves you a profit after the jobs you actually win. A cheap lead you rarely win can cost more than an expensive one you usually do.
How do I measure my win rate?
For one month, note every lead from the source and whether it became a paid job. Even 20 leads gives you a useful number.
How do I get leads without paying per lead?
Answer every call, ask every customer for a Google review, and have a website that shows your work and areas. Those keep bringing work without a fee each time.
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