Work out the ad budget your jobs need
Start from the jobs you want.
Ad budget and cost per lead
firmkit.co/tools/ad-budget-estimator/ · Oct 19, 2026
Example numbers, not yours.
Your calculation, step by step
- 8jobs you want a month, your figure
- / 25% x 8%close rate times lead rate, your figures
- = 400clicks needed
- x $6.00cost per click, your figure
- = $2,400a month in ad spend
- $75.00per lead: click price divided by lead rate
- $300per job: lead price divided by close rate
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Opens on this page the moment you press the button. Print it, save it, or mail a copy to yourself from there.
Your budget, cost per lead and profit per job stay free above.
- A matrix of what happens if cost per click or conversion moves 25 percent
- A 90‑day ramp with spend, jobs and gross profit by month
- A printable copy for you or your partner
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Your table and printable plan
This report uses the example numbers.
Set the share of your target volume you expect in each of the first three months. The defaults are placeholders.
A planning aid, not accounting or legal advice.
Made with firmkit.co/tools/ad-budget-estimator/. A planning aid, not accounting or legal advice.
How the numbers are worked out
The formula, in words
Clicks = jobs wanted / (close rate x click-to-lead rate)
Budget = clicks x cost per click
Cost per lead = cost per click / click-to-lead rate. Cost per job = cost per lead / close rate
Profit per job = average job x margin - cost per job. Break-even close rate = cost per lead / (average job x margin)
Not modeled: Local Services Ads, which charge per lead instead of per click. Repeat work and referrals are also left out, so real returns can be higher than the profit shown.
What the tool cannot know
- Your real conversion rate. It depends on your ad, page and phone handling.
- Cost per click changes by hour, season and competitor.
- Lead quality. Some leads never answer or want a free quote only.
- Taxes, overhead and your own time.
Every assumption, and who set it
| Assumption | Value | Set by |
|---|---|---|
| Jobs, value, margin | Your numbers | You |
| Close rate and click-to-lead rate | Your numbers | You |
| Cost per click | Your number | You |
| Scenario swing | Plus or minus 25% | Firmkit |
| Ramp shares | 50, 75 and 100% | Placeholders, you change them |
Sources
- The arithmetic is a standard funnel. The published averages in the table come straight from LocaliQ’s home services search advertising benchmarks (the 2025 edition, page last updated July 15, 2026), checked on Oct 19, 2026: LocaliQ, home services benchmarks.
- Why missed-call calculators lie, including ours (Firmkit blog) explains why defaults can mislead.
Source check
- LocaliQ 2025 home services table. Read at the original page on Oct 19, 2026
Questions people ask
How much should I spend on Google Ads?
Spend what the jobs you want require, then check it earns a profit. Divide that number by your close rate and click-to-lead rate to get clicks, then multiply by your cost per click. If the budget is more than the gross profit those jobs bring, start smaller or fix the funnel first.
What is a good cost per lead?
A good cost per lead is one your close rate and job value can pay for. Published averages vary widely by trade and report, so they make a poor target. Work out your break-even: cost per lead divided by your gross profit per job. Stay well under it, and track it monthly from your own account.
What is the difference between cost per click and cost per lead?
Cost per click is what you pay each time someone clicks an ad. Cost per lead is what you pay for each call, form or text, so it is cost per click divided by the share of clicks that become leads. Cost per job adds your close rate. Judge ads by cost per job.
Why does close rate matter more than cost per click?
Cost per job is cost per click divided by both the click-to-lead rate and the close rate. A weak close rate multiplies every dollar you spend. Answering fast, quoting fast and following up often raise it without any extra ad spend. Fix the funnel before you raise the budget.
When do ads lose money?
Ads lose money when cost per job is higher than gross profit per job. The tool shows this as a negative profit per job and the close rate you would need to break even. Common causes are missed calls, slow quotes, a weak landing page, or clicks from outside your service area.
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