Max Lead Cost Calculator
Figure out the most you can afford to pay for a lead based on your close rate, average job size, and target marketing spend. Stop overpaying for HomeAdvisor, Angi, Google LSA, and Thumbtack leads.
After materials, labor, overhead
From HomeAdvisor, LSA, Google Ads, Thumbtack, etc.
The Numbers You Can Afford
Profit Per Job
$1125
25% of $4500
Max Marketing per Job
$169
15% of profit
Leads Per Customer
5.0
at 20% close rate
Max Cost Per Lead
$34
never pay more
Reality Check: Paying $40/Lead
Actual CAC
$200
cost per closed customer
Marketing as % of Profit
18%
target was 15%
Profit After Marketing
$925
per closed job
You're in the green. At $40/lead and a 20% close rate, each closed job nets you $925 after marketing — that's 18% of profit going to marketing (your target was 15%).
What $1,000/month in Ad Spend Looks Like
Leads / Month
25
Customers / Month
5.0
Revenue / Month
$22,500
Profit / Year
$55,500
Typical Lead Costs by Source (2026)
Sources highlighted green are at or below your max affordable lead cost ($34). Red sources require a higher close rate or job value to be profitable.
How to Use This Calculator
Enter your average job value and profit margin, your historical close rate (1 in X leads converts), and what percentage of profit you're willing to invest in marketing. The calculator works backward to find the most you can afford to pay per lead. Then compare it to what you're actually paying.
Formula Used
Profit Per Job = Job Value × Margin%. Marketing Budget = Profit × Marketing Share%. Max Cost Per Lead = Marketing Budget × Close Rate%. Customer Acquisition Cost (CAC) = Lead Cost ÷ Close Rate%.
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Disclaimer
This calculator is for estimation purposes only. Results may vary based on local conditions, materials, and building codes. Always consult a licensed professional before making decisions based on these calculations. MyContractorTools is not responsible for any errors or omissions.