Tool
Lead cost estimator
By Umair Nawaz, founder of Lirevon Updated How we test tools
Before you spend on Google Local Services, Google Ads or other paid social ads, work out what a lead is worth to you. Then you know the most you can pay for one and still make money. Every number is yours to change.
Leads a month
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Jobs won a month
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Revenue a month
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Profit after ads
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Return on ad spend
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Break-even cost per lead
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Estimate only. Platforms, seasons and your answer rate change these numbers. A lead you do not answer costs the same as one you do.
The number most owners miss
Ads bring the call. If about a quarter of calls go unanswered (Invoca's home-services figure is 27%), a quarter of your ad budget is spent on leads nobody speaks to. Fixing the answer rate is cheaper than raising the budget, which is why we suggest setting up the text-back and follow-up before any ad spend.
Get my free 5-minute auditQuestions about lead costs
What is a good cost per lead for a tree service?
There is no single right number. It depends on your town, your season and the kind of job. The better question is the most you can pay for a lead and still make money. This tool works that out from your own estimate rate, close rate, job value and margin.
How do I work out the most I can pay for a lead?
Multiply four numbers: the share of leads that become an estimate, the share of estimates you win, your average job value and your gross margin. The result is your break-even cost per lead. Pay less than that and each lead makes money.
What is return on ad spend?
Return on ad spend, or ROAS, is the revenue your ads bring in divided by what you spent on them. A ROAS of 4x means $4 of revenue for each $1 of ads. It is revenue, not profit, so also look at the profit line in this tool.
What is the difference between a lead and a job?
A lead is a call, text or form from someone interested. Only some leads become estimates, and only some estimates become paid jobs. The tool walks through each step so you can see where leads drop off.
Why are the starting numbers only examples?
Every business is different. The budget, cost per lead, rates and margin shown are starting points, not averages for tree companies. Replace them with your own numbers from your books and your lead log.
Should I raise my ad budget or fix something else first?
Check your answer rate first. Invoca reports that about 27% of calls to home-service businesses go unanswered. A lead you do not answer costs the same as one you do, so fixing missed calls is often cheaper than buying more leads.
Does this tool work for Google Local Services Ads and other paid ads?
Yes. It does not matter where the lead comes from. Enter what the platform charges you per call or form as the cost per lead, and use your own rates after that. For a weekly view of Local Services Ads, try the LSA budget planner.
How do I find my own estimate rate and close rate?
Count the leads you got in a month, how many became a booked estimate, and how many of those you won. Divide to get each rate. The lead source ROI tracker can keep this by source.
Is anything I type sent to Lirevon?
No. The math runs in your browser and nothing is sent or saved anywhere.
Learn more: cost per lead, return on ad spend and average job value. Want more of those leads booked? See the Booked Jobs Engine, Lirevon for growing tree companies or browse quick answers.