Local Contractor Ad Spend Budget Planner
Plan your monthly marketing budget to hit your revenue goals. Work backwards to determine exactly how many leads and estimates you need.
Goal & Financial Targets
Conversion Metrics
Try these scenarios:
Results Analysis
LeadValue Score™
* Example score based on your inputs. Use CRM and call tracking data for the most accurate analysis.
What this means:To hit your $100,000 revenue goal, you need to spend $10,000 at a CPA of $500. You'll need 83.3 qualified leads this month.
Compare Against Contractor Planning Ranges
Planning ranges, not guarantees. Benchmarks vary by market, season, trade, offer, ad platform, service mix, and sales process. Use your own CRM, call tracking, accounting, and ad platform data where possible.
Cost Per Qualified Lead
Depends on season and market.
Lead-to-Booked Rate
Varies by speed-to-lead.
Estimate Close Rate
Impacted by in-home sales skills.
Average Job Value
Blended service vs. replacement.
Gross Margin
Targeting 50%+ is ideal.
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Frequently Asked Questions
A common benchmark is 5-10% of targeted gross revenue. However, if you are in aggressive growth mode, you might push this to 10-15%. This calculator helps you work backwards from your revenue goal.
Target Cost Per Acquisition (CPA) is the maximum amount you are willing to spend to acquire one paying customer. It should always be lower than your gross profit per job.
Your close rate dictates how many estimates you need to run to hit your revenue goal. If your close rate is low, you have to spend more on marketing to generate the extra leads needed.
Gross margin determines how much actual cash is left after paying for materials and labor. If your margins are tight, you have less room to absorb high customer acquisition costs.