Free calculator for contractors

What can you afford to pay for a lead?

Four numbers you already know. The receipt does the maths, line by line, and stamps your real lead cost.

Safety cushion and monthly budget

ES STUDIOS SUPPLYOne job, worked backwards

  • Average job$8,000
  • Job costs (70%)-$5,600
  • Gross profit per job$2,400
  • Leads to win 1 job (25%)÷ 4
Most you can pay per lead$600
  • Safety cushion (20%)-$120
  • Safe working target$480
  • What you pay now$200

Break-even = gross profit per job × close rate. Before overhead, tax and your wage.

Under

Your month at $4,000.

Same budget, two lead prices: what you pay now, and your safe target. Worked from your numbers only.

At $200 a lead you're under your safe target. Room to spend more.

Paying $200 a lead

Leads
20
Jobs won
5
Gross profit
$12,000
After ad spend
$8,000

At your safe $480 target

Leads
8.3
Jobs won
2.1
Gross profit
$5,000
After ad spend
$1,000

Take it to your next ad meeting.

The Maximum Cost Per Lead Planner: your receipt on paper, a 4-scenario table, and a weekly tracking sheet so you can tell the agency (or yourself) exactly what a lead is allowed to cost.

  • The formula, with your numbers filled in
  • What changes if your close rate moves 5 points
  • A weekly sheet: spend, leads, booked, sold, profit

Your limit: $600 a lead

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Questions

What is gross margin here?

What's left of the job price after materials, subcontractors and direct labour. Use the number your accountant uses for job profit.

Why a safety cushion?

Break-even leaves nothing for overhead, a slow month or your own wage. The cushion lowers the number you work to. You choose how big.

Are these industry averages?

No. The starting numbers are an example so the receipt prints on first load. Replace them with yours.