Cost per lead is what you spent on a source divided by the leads it sent. Cost per booked job is what you spent divided by the jobs it booked. Cost per booked job is the number that matters, because a cheap lead that never books costs more than an expensive one that does.
How to calculate cost per lead and cost per booked job
| Number | Formula | What it tells you |
|---|---|---|
| Cost per lead | Spend ÷ leads | What each call, form or message cost you |
| Booking rate | Jobs booked ÷ leads | How many of those leads turned into work |
| Cost per booked job | Spend ÷ jobs booked | What it costs to win one job from that source |
| Profit per job before marketing | Average job price × gross margin | The most a booked job can cost before you lose money on it |
| Profit left each month | (Jobs booked × profit per job) − spend | Whether the source paid for itself last month |
A worked example
The numbers in this example are made up to show the math, not data from any company. A contractor's average job is $1,200 and leaves 40% gross margin, so each booked job leaves $480 before marketing.
- Shared lead site: $1,500 for 40 leads is $37.50 per lead, which looks cheap. Only 6 booked, so each job cost $250.
- Local Services Ads: $1,200 for 25 leads is $48 per lead. 7 booked, so each job cost about $171.
- SEO: $600 for 8 leads is $75 per lead, the most expensive lead of the three. 3 booked, so each job cost $200.
Ranked by cost per lead, the shared lead site wins. Ranked by cost per booked job, it comes last. That's why the calculator puts cost per booked job first.
What is a good cost per lead for a contractor?
There isn't one number that fits every trade. LocaliQ's 2026 search advertising benchmarks put the Home and Home Improvement category at an average of $90.92 per lead from Google search ads. A better test is your own math: a source is worth keeping when its cost per booked job is well below the profit a job leaves you. A $250 job cost is fine for a $12,000 roof and a loss on a $150 drain clearing.
Why cost per lead misleads you on shared leads
Lead platforms often send the same homeowner to several companies. You pay for the lead whether you win the job or not, so your booking rate drops and your real cost per job rises. In 2023 the FTC finalized an order requiring HomeAdvisor to pay up to $7.2 million after alleging it misled service providers about the quality of its leads. Track jobs booked from every platform as well as leads. Our guide on shared leads covers the alternatives, and is Angi worth it runs the numbers for one platform.
Where to get the numbers
- Spend: last month's bills from each platform, ad account and agency.
- Leads: platform dashboards, call logs and form emails. A separate tracking phone number for each source makes this easy.
- Jobs booked: ask every new caller how they found you, and write it on the job ticket. Your field service software may track it for you.
- Average job price and margin: your accounting software, or last quarter's invoices.
A month of data is a start. Three months smooths out a slow week or a storm.
What the SEO line in the calculator means
SEO and your Google Business Profile don't charge per lead. You pay a fixed amount, and the calls that come from your site and map listing cost nothing extra. The calculator shows how many booked jobs a month a fixed fee needs to pay for itself. Realo's Monthly care plan is $600 a month, which is why the box starts there; change it to any quote you're weighing. SEO takes months to build, so judge it on the trend over a quarter or two, not on its first month. Our guides on whether SEO is worth it for contractors and how long SEO takes go deeper.
Lead guides by trade
- How to get more plumbing leads
- How to get more HVAC leads
- How to get more electrical leads
- How to get more remodeling leads
- How to get more roofing leads
- How to get more pest control leads
Common questions
How do you calculate cost per lead?
Divide what you spent on a lead source by the number of leads it sent in the same period. $1,500 spent for 40 leads is $37.50 per lead.
How do you calculate cost per booked job?
Divide what you spent on a source by the number of jobs it booked. $1,500 spent and 6 jobs booked is $250 per booked job. This is a better measure than cost per lead, because it counts only leads that turned into work.
What is a good cost per lead for contractors?
It depends on your job size. LocaliQ's 2026 benchmarks put Home and Home Improvement search ads at an average of $90.92 per lead. A better test is whether your cost per booked job is well below the profit a job leaves you.
What is customer acquisition cost for a home service business?
Customer acquisition cost is your total marketing spend divided by the new customers it brought in. For contractors it's usually the same as cost per booked job. For plan businesses such as pest control, compare it with what a customer pays you in the first year.
Is SEO cheaper per lead than Angi or Local Services Ads?
It can be, because SEO costs a fixed amount and calls from your site and map listing cost nothing extra. It takes months to build, so compare cost per booked job over a quarter or more. The calculator shows how many jobs a month a fixed SEO fee needs to pay for itself.
Is my data saved or sent anywhere?
No. The calculator runs in your browser. Your numbers are only kept in the page link, so they're shared only if you copy that link and send it to someone.
Sources
- LocaliQ, Search advertising benchmarks, updated June 1, 2026
- Federal Trade Commission, FTC approves final order against HomeAdvisor, April 2023
Want more of the calls that cost nothing per lead?
The free audit shows what is stopping your website and Google profile from bringing in calls, ranked by what to fix first.
Get my free audit