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Google Ads ROI Calculator for Contractors

Work out the real return on your Google Ads spend before you commit a dollar. Adjust your monthly budget, average CPC, landing-page conversion, lead-to-job close rate and average job value, and see the clicks, leads and jobs the campaign generates, the cost per lead, the cost per job, the net profit, and the ROAS (return per dollar spent). A transparent model with no inflated numbers, using reference CPC and CPL figures from WordStream Google Ads benchmarks.

Your campaign
$

What you invest per month in the ads account.

$

What you pay on average per click. Varies by trade and area.

8 %

Of the clicks that arrive, how many leave details or call.

35 %

Of the leads, how many become invoiced jobs.

$

What you invoice on average per closed job.

What your spend returns
Return per dollar spent (ROAS)1.2xrevenue generated for every dollar of ads
Revenue/month$2,450
Leads/month20
Jobs/month7
Cost per lead$100
Cost per job$286
Net profit/month$450
Revenue generated$2,450
Ad spend$2,000

Directional model. CPC and cost per lead vary widely by trade, area and competition; real numbers depend on your campaign, your landing page and your sales team. CPC and CPL reference for the home & home-improvement category: WordStream Google Ads benchmarks.

How it works

Google Ads is the fastest way to buy leads in home services, and also the easiest to burn through without noticing. The difference between a profitable campaign and a money leak is not the budget: it is the CPC you pay, how many clicks your landing page converts, and how many leads turn into invoiced jobs. This calculator chains those four variables together so you can see the return before you spend a dollar.

Adjust your figures above and watch, in real time, how many leads and jobs your budget generates, what each one costs, and how much you keep as profit.


How it computes

The model is deliberately transparent, with no black boxes:

  • Clicks/month = monthly budget divided by average CPC.
  • Leads/month = clicks times landing conversion (what share of clicks leave details or call).
  • Jobs/month = leads times close rate (what share of leads become invoiced jobs).
  • Revenue/month = jobs times your average job value.

From there come the three numbers that matter: the cost per lead (budget divided by leads), the cost per job (budget divided by jobs), and the net profit (revenue minus budget).

How to read ROAS

The headline figure is ROAS: how many dollars of revenue you generate for every dollar spent on ads. A ROAS of 5x means the campaign bills five dollars for every dollar of Google Ads. It is the single metric that best sums up whether the campaign is breathing or drowning.

One important warning: ROAS is not profit. ROAS measures revenue over ad spend, not margin. If your margin per job is 30%, a 5x ROAS leaves a much more modest real return on ad spend once you subtract materials, labor and overhead. For mid-to-high-ticket home services a healthy ROAS usually sits above 3x-4x, but the exact threshold depends on your margin: the thinner it is, the higher the ROAS you need for the campaign to be worth running.

The lever almost nobody uses: negative keywords

If your cost per lead came out high, the first adjustment is not to raise the budget. It is to clean the campaign. Negative keywords block searches that pull clicks that will never close: people looking for jobs in your trade, training courses, DIY tutorials, or a competitor's name. Each of those clicks is paid for exactly like a real lead, but it never invoices.

Filtering out that useless traffic cuts wasted spend and lowers cost per lead without touching the budget. After that come service-specific landing pages, call extensions and, above all, responding fast to the lead that comes in. Raise landing conversion a couple of points in the calculator and watch cost per job collapse: that is the effect you are after.

When ads beat SEO (and when they don't)

Google Ads and local SEO are not rivals; they are tools for different time horizons. Ads buy immediate visibility: switch the campaign on and leads come in today. That makes them irreplaceable for emergencies, for entering a new market, or for covering a seasonal peak. The price is that the moment you stop paying, the flow cuts off cold.

Local SEO takes months to mature, but once ranked it brings in leads with no per-click cost, month after month. It is an asset that compounds. The practical rule for a contractor that wants to grow: use Google Ads to cover the short term and urgent demand, and build visibility and conversion in parallel so your cost per lead falls over time. Most businesses that truly scale run both channels rather than choosing.

What to do with the number

If your ROAS came out low, it does not necessarily mean Google Ads will not work for you: it usually means there is a specific leak (high CPC, a weak landing page, or leads lost without a response). The Google Ads for home services guide explains how to tune each lever, and the Google Ads vs Meta Ads comparison helps you pick the channel before you invest. Explore the other tools or, to review your campaign with real data on the table, talk to us.

Real benchmarks

The data behind the defaults

Every default value is anchored to a verifiable industry source.

$6.55
Average CPC in the Home & Home Improvement category on the Google Ads Search network
Source: WordStream — Google Ads benchmarks (Home & Home Improvement)
$78.80
Average cost per lead (CPL) in that same Google Ads category
Source: WordStream — Google Ads benchmarks (Home & Home Improvement)
We answer before you ask

Questions about this tool

The real questions we get about how to read these numbers.

Direct help

Question not listed here?

Thirty minutes by video or phone. No jargon. The team answers with data from your business on the table.

Talk to the team
  1. Q/01How does the tool calculate Google Ads ROI?

    It starts from your monthly budget and divides it by the average CPC to estimate clicks. It applies your landing-page conversion (click to lead) to get leads, and your lead-to-job close rate to get jobs. It multiplies those jobs by your average job value to reach monthly revenue. ROAS is revenue divided by budget, cost per lead is budget divided by leads, and cost per job is budget divided by jobs. Net profit subtracts the budget from revenue. It is a directional model: swap in your own numbers as soon as you have them measured.

  2. Q/02What is ROAS and how do I read it?

    ROAS (return on ad spend) is how many dollars of revenue you generate for every dollar spent on ads. A ROAS of 5x means the campaign bills five dollars for every dollar of Google Ads. A caveat: ROAS is not profit. If your margin per job is 30%, a 5x ROAS leaves a return on ad spend of roughly 1.5x before operating costs. For high-ticket home services a healthy ROAS usually sits above 3x-4x, but the real threshold depends on your margin.

  3. Q/03Why is the CPC in my trade so different from the tool's default?

    Cost per click in Google Ads varies enormously by trade, metro and competition. An emergency plumbing search in an expensive city can cost several times more per click than a remodel in a rural county. That is why the CPC field is editable: enter your real CPC from the Google Ads report, or a value typical of your area. The WordStream Home & Home Improvement benchmarks are a starting reference, not a promise for your account.

  4. Q/04How do I lower cost per lead without changing the budget?

    The fastest lever is negative keywords: blocking terms that pull clicks that never close (job seekers, training courses, DIY tutorials, competitor brand names) cuts wasted spend and lowers cost per lead without raising the budget. Next come a service-specific landing page, call extensions and fast lead response. The calculator lets you see the effect: raise landing conversion a few points and watch cost per job drop. Local Services Ads, where you pay per lead rather than per click, are another option for US contractors in eligible categories.

  5. Q/05When do ads beat SEO, and when is SEO the better bet?

    Google Ads buys immediate visibility: switch the campaign on and leads come in today, which is ideal for emergencies, entering a new market or covering seasonal peaks. Local SEO takes months but, once ranked, brings in leads with no per-click cost, month after month. The practical rule: use Google Ads to cover the short term and urgent demand, and build SEO in parallel so your cost per lead falls over time. Most contractors that scale run both.

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