Google Ads ROI calculator

Put in your own numbers. The calculator works from cost per lead rather than cost per click, because a lead is what you pay for in the end, and it takes the management fee off before it shows profit.

Calculator

Search ad cost per lead, medians from LocaliQ (campaigns April 2024 to March 2025). Use your own if you know it.

Management fee

Close rate, job value and margin start as example values. Replace them with yours.

Leads a month39
Paid jobs a month12
Revenue from those jobs$14,091
Gross profit at your margin$6,341
Less ad spend$5,000
Less management fee$1,000
Profit after ads and fees$341
Break-even cost per lead
$162.00
Revenue per ad dollar
2.8

At these numbers you can pay up to $162.00 a lead before the ads stop covering their own cost.

How the numbers are worked out

LeadsAd spend divided by cost per lead
Paid jobsLeads times the share you close
Gross profitJobs times job value times margin
Profit after ads and feesGross profit, less ad spend, less the management fee
Break-even cost per leadJob value times margin times close rate. Pay more than this per lead and the ads lose money before any fee

Questions

What is a good return on Google Ads for a contractor?

There is no single number. It depends on your job value, your margin and how many leads you close. The useful figure is the most you can pay per lead and still make money, which this calculator shows as the break-even cost per lead.

Where do the cost per lead presets come from?

They are median cost per lead figures for Google search ads from LocaliQ’s home services benchmarks, campaigns April 2024 to March 2025. Your own cost per lead, from your account, is always better than a benchmark.

Why does the management fee change the answer so much?

A percentage fee grows with your spend, so the more you spend the more it takes from profit. A flat fee stays the same. Switch the fee option to see the difference at your spend.

Not sure what your real cost per lead is?

That usually means tracking is broken. Send your website and we will tell you what the account is and is not counting. No call needed.

Top right of your Google Ads account. With read-only access the audit can check conversion settings and bidding; you approve the access. Leave it blank for an outside review of what a customer sees.

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