Cost Per Lead Calculator for Contractors (With Real Numbers)

$312. That’s what one remodeling contractor told me he was paying per lead on Angi last year. He didn’t even realize it until he sat down and did the math.

If you’re spending money on marketing and you don’t know your cost per lead for each channel, you’re flying blind. You might be dumping cash into a source that barely converts while ignoring the one that fills your pipeline for a fraction of the cost.

This guide gives you the formula, real benchmarks by channel, and two worked examples so you can calculate your own numbers in about 10 minutes.

Try EstimationPro free - turn photos and notes into professional estimates in minutes, then let automated follow-up sequences close the deal.

Quick Answer: How to Calculate Cost Per Lead

Cost per lead (CPL) = total marketing spend on a channel / number of leads generated from that channel. If you spent $2,000 on Google Ads last month and got 25 phone calls from it, your CPL is $80. Simple division, but most contractors never track it because they’re too busy actually doing the work.

CPL tells you which marketing channels are worth your money and which ones are burning it. It’s the single most important number for deciding where your next marketing dollar goes.

Cost Per Lead Benchmarks by Channel

These numbers come from home services industry data (Angi Pro reports, Google Ads benchmarks for home services, and field experience from contractors running paid campaigns in 2025-2026). Your market will vary, but these ranges give you a realistic starting point.

Marketing Channel	Typical CPL Range	Lead Quality	Notes
Google Ads (Search)	$50-$250	High intent	Varies wildly by trade and metro. Roofers and HVAC pay the most.
Angi / HomeAdvisor	$30-$150	Mixed	Shared leads cost less but convert lower. Exclusive leads cost more.
Thumbtack	$20-$100	Mixed	Pay-per-lead model. Small jobs skew cheaper.
Facebook/Instagram Ads	$15-$75	Lower intent	Good for awareness but leads need more nurturing.
SEO / Organic website	$10-$50*	High intent	*Amortized cost. High upfront investment, drops over time.
Referrals	$0-$25	Highest	Best conversion rate. Cost is maintaining relationships and reputation.
Door knocking / yard signs	$5-$30	Varies	Almost zero cost. Time-intensive but surprisingly effective for local work.

Sources: Google Ads benchmark data for home services (WordStream 2025), Angi Pro cost reports, NAHB Remodelers survey on marketing spend.

The table tells a clear story. Paid platforms charge a premium because they control the pipeline. Organic channels cost less per lead but take time to build. Referrals are king, and they always will be.

What CPL Doesn’t Tell You (And What Matters More)

CPL by itself is just half the picture. A $200 lead that turns into a $45,000 kitchen remodel is a great deal. A $20 lead that wastes two hours of your time and never calls back is expensive no matter how cheap it looks on paper.

That’s why you also need to track:

• Cost per acquisition (CPA): Total spend / number of leads that actually became paying customers. This is the number that really matters.
• Average job value by source: Do Google Ads leads tend to be bigger jobs than Thumbtack leads? Usually yes.
• Close rate by source: If you close 40% of referrals but only 10% of Angi leads, the math changes fast.

The Formula That Actually Matters

Cost per acquisition = marketing spend / closed jobs from that source

If you spend $2,000 monthly on Google Ads, get 25 leads, and close 5 of them, your CPA is $400. If those 5 jobs average $12,000 each, you spent $400 to earn $60,000 in revenue. That’s a 150:1 return.

Now compare that to a channel where you spend $500 monthly, get 30 leads, but only close 2 small jobs averaging $800. Your CPA is $250, but your revenue is only $1,600. Suddenly the “cheaper” leads are actually costing you more per dollar of revenue.

Worked Example 1: General Contractor With Three Channels

Let’s say you’re a general contractor running these three marketing channels:

Monthly spend:

• Google Ads: $1,500
• Angi: $600 (4 exclusive leads at $150 each)
• Yard signs + referral cards: $100

Results last month:

Channel	Spend	Leads	CPL	Jobs Closed	CPA	Revenue
Google Ads	$1,500	18	$83	4	$375	$52,000
Angi	$600	4	$150	1	$600	$8,500
Referrals/Signs	$100	6	$17	3	$33	$28,000
Totals	$2,200	28	$79 avg	8	$275 avg	$88,500

What the numbers reveal:

• Referrals deliver the best ROI by a mile. Your $100 investment returned $28,000.
• Google Ads are expensive but the leads are big. a CPA of $375 when those jobs average $13,000 is solid math.
• Angi is the weakest performer here. $600 for one $8,500 job. Not terrible, but not great either. If this pattern holds for 3 months, it might be time to reallocate that $600 to Google Ads or double down on referral systems.

Worked Example 2: Specialty Contractor (Tile Installer)

A tile contractor with a smaller marketing budget:

Monthly spend:

• Google Business Profile (free, but 2 hours/week maintaining it): $0 cash, ~8 hours time
• Thumbtack: $300
• Facebook Ads: $200

Results:

Channel	Spend	Leads	CPL	Jobs Closed	CPA	Avg Job Size
Google Business Profile	$0	8	$0	3	$0	$4,200
Thumbtack	$300	10	$30	2	$150	$2,800
Facebook Ads	$200	12	$17	1	$200	$1,500
Totals	$500	30	$17 avg	6	$83 avg	$3,200 avg

Takeaways:

• Google Business Profile is free and delivers the biggest jobs. Keeping your profile updated, responding to reviews, and posting project photos costs nothing but time.
• Thumbtack works for volume but the jobs are smaller. Good for keeping the schedule full during slow weeks.
• Facebook generates the most leads but the lowest close rate and smallest jobs. These are “window shoppers” who saw an ad, not people actively searching for a tile installer. Consider cutting this or shifting to retargeting campaigns for past website visitors.

How to Track Your Own CPL

You don’t need expensive software. A simple spreadsheet works. Track these columns monthly:

1. Channel name (Google Ads, Angi, referrals, etc.)
2. Monthly spend (include ad spend, subscription fees, and lead purchase costs)
3. Number of leads (phone calls, form fills, messages - anything that’s a real inquiry)
4. Number of jobs closed from each channel
5. Total revenue from those closed jobs

The hard part isn’t the math. It’s actually tracking where leads come from. Here are practical ways to do it:

• Ask every caller: “How did you hear about us?” Simple. Most people will tell you.
• Use separate phone numbers: Google Ads get one tracking number, your website gets another, your yard signs get a third. Services like CallRail or even Google forwarding numbers make this easy.
• Tag leads in your CRM or estimating tool: When a lead comes in through EstimationPro, tag the source so you can run reports later.
• Check Google Business Profile insights: It shows how many calls, direction requests, and website clicks came from your listing.

Common Mistakes Contractors Make With Marketing Spend

1. Not tracking at all

This is the biggest one. Most contractors I talk to have no idea what their CPL is. They’re spending $500 to $2,000 a month on marketing and just hoping it works. If you only do one thing from this article, start tracking spend vs. leads by channel.

2. Judging channels by CPL alone

A $20 Thumbtack lead that never answers the phone is worth less than a $150 Google lead who’s ready to sign a contract today. Always factor in close rate and job size.

3. Cutting referral investment to fund paid ads

Referrals convert at 2-5x the rate of cold leads. Spending $200 a month on thank-you gifts, referral cards, and follow-up calls with past clients often outperforms $2,000 in ad spend. Don’t neglect the relationships that built your business.

4. Averaging across all channels

Your “blended CPL” masks the truth. Channel-level tracking is what reveals where to put your next dollar. If your blended CPL is $75 but Google is $150 and referrals are $15, the average tells you nothing useful.

5. Ignoring seasonality

Lead costs spike when everyone is advertising (spring and early summer for most trades). Your CPL in March might be double what it is in November. Track monthly so you can adjust budgets with the seasons, not against them.

Pro Tips for Lowering Your CPL

• Invest in your Google Business Profile. It’s the highest-ROI marketing channel for local contractors. Post weekly, respond to every review, add photos of completed work. Free leads from organic search are hard to beat.
• Build a referral system, not just referral hope. Ask satisfied clients for referrals at the right moment (usually right after the final walkthrough when they’re happiest). Give them referral cards. Send a thank-you when someone they referred hires you. Make it a system, not an afterthought.
• Improve your close rate. Lowering CPL is one approach. Closing more of the leads you already get is another. If your overhead and profit structure is dialed in and your estimates are professional, you’ll close more bids without spending another dollar on ads.
• Speed wins. The contractor who responds first gets the job 50% of the time, according to NAHB research. If someone fills out a form on your site, call them within 5 minutes, not 5 hours.
• Track quarterly, decide quarterly. Don’t panic-cancel a channel after one bad month. Look at 90-day trends before making big budget moves.

If you want to tighten your estimating process so you can respond to leads faster, Try EstimationPro free. Upload photos and notes from the jobsite, get a professional estimate back in minutes, and let automated follow-up sequences keep working that lead while you’re on the next job. It’s the full workflow: estimate, proposal, follow-up, invoice, paid.

FAQ

What is a good cost per lead for contractors?

A “good” CPL depends on your trade, market, and average job size. For general contractors and remodelers, $50-$150 per qualified lead is a common target. Specialty trades like painting or handyman services often see $20-$60. The real question is whether your CPL allows profitable customer acquisition, which depends on your close rate and average job value.

How do I calculate cost per lead?

Divide your total marketing spend on a channel by the number of leads it generated. If you spent $1,200 on Google Ads and received 15 calls from potential customers, your CPL is $80. Track this monthly for each channel to spot trends and reallocate budget to your best-performing sources.

Is Angi worth it for contractor leads?

It depends on your market and trade. Angi (formerly HomeAdvisor) charges $30-$150 per lead depending on the job type and whether the lead is shared or exclusive. In competitive markets, shared leads can have 3-5 contractors calling the same homeowner, which tanks your close rate. Run the numbers for 3 months before deciding. If your CPA through Angi exceeds 10% of your average job value, consider reallocating that budget.

What’s the difference between cost per lead and cost per acquisition?

CPL measures the cost of getting a potential customer’s attention. CPA measures the cost of actually winning the job. If your CPL is $80 and you close 1 in 5 leads, your CPA is $400. CPA is the more important metric because it accounts for your close rate and sales process, not just lead volume.

How much should contractors spend on marketing?

The NAHB and SBA both suggest 5-10% of revenue for small businesses, but the right number depends on your growth goals and current pipeline. If you’re turning away work, you can spend less. If you need to fill the schedule, budget toward 8-10%. Track your CPL and CPA so every dollar is accountable, not just a guess. Understanding your markup and margins makes it easier to set a marketing budget you can actually afford.

Stop Guessing, Start Tracking

The contractors who grow their businesses year over year aren’t the ones spending the most on marketing. They’re the ones who know exactly where every dollar goes and what it brings back. Start tracking your CPL this month. Even a basic spreadsheet will show you patterns you’ve been missing.

And when a lead does come in, speed and professionalism win the job. Try EstimationPro free to turn jobsite photos and notes into a polished estimate in minutes. From there, EstimationPro handles the full cycle: professional proposals go out automatically, follow-up sequences keep working the lead so you don’t have to chase, and when you win the job, invoicing and payment collection are built right in. That’s the whole pipeline from first call to final payment, without the paperwork pile.

Regional disclaimer: All cost and CPL benchmarks are national averages. Your actual costs will vary based on metro area, trade specialty, competition level, and seasonality. Track your own numbers for the most accurate picture.