What can you afford to pay for a lead?

The formulas behind the calculator

Contribution per job = average job revenue × contribution margin.

Break-even total acquisition cost per inquiry = contribution per job × inquiry-to-booking rate. This uses all job contribution for acquisition and leaves nothing for fixed overhead or profit. A sustainable target is usually lower.

Scenario inquiries = ad spend ÷ assumed cost per inquiry. Scenario jobs = scenario inquiries × booking rate. Fractional jobs are an expected-value calculation, not literal bookings.

Contribution after marketing = scenario jobs × contribution per job − ad spend − management and tools. This is not net profit; fixed overhead, taxes, timing, refunds, and other costs are not included.

Use comparable numbers

Use the average value and contribution margin of the jobs the campaign is intended to attract. If the service mix varies widely, run separate scenarios. Do not use your most valuable job as the average.

Use the booking rate for the same type of inquiry used in your cost-per-inquiry assumption. A rate based on qualified estimates cannot be paired directly with a cost based on every call or form start.

This model treats the entered bookings as additional work and assigns the entered monthly fees to this campaign. It does not include repeat purchases or lifetime value. Review those assumptions before using it to set a budget.

Turn the scenario into a question

If the scenario leaves little contribution after marketing, investigate the assumptions before increasing spend. Can the business improve inquiry handling, focus on a better service mix, or reduce irrelevant requests? Could the observed booking rate be incomplete because recent leads have not had time to book?

The calculator cannot tell you the future price of a Google Ads click or whether enough demand exists. It helps you see which assumptions matter. Compare the scenario with actual inquiry and job records as a campaign develops.