Free Business Tool
Marketing ROI Calculator
See exactly what your marketing spend returns in gross profit — enter your monthly spend, leads, appointment rate, close rate, and average job value for an instant ROI picture.
See How SubcontractorHub Improves Marketing ROIIs Your Marketing Actually Paying Off?
Enter your funnel metrics. ROI, cost per lead, and cost per closed job update instantly.
% of leads who agree to an in-home estimate or appointment.
% of appointments that result in a signed job.
Marketing ROI
9.5× return · 855%
$28,642 gross profit on $3,000 spend — Strong
Closed jobs
9.4
29 appts × 32% close
Revenue generated
$79,560
9.4 jobs × $8,500
Cost per lead
$67
$3,000 ÷ 45 leads
Cost per closed job
$321
your effective CAC
Estimates only. Accurate marketing ROI requires consistent lead source attribution from your CRM. Many contractors undercount appointment rates or overcount close rates, inflating apparent ROI.
How to Use This Calculator
Enter your total monthly marketing spend
Include all spend that generates leads: Google Ads, LSA, social ads, Angi/HomeAdvisor lead fees, direct mail, and any marketing agency retainer. If you have multiple channels, use this calculator per channel to compare ROI across them — a $1,500 Google LSA campaign may return very differently than $1,500 in Angi leads.
Enter leads and appointment rate
Leads are contacts who expressed interest (form fills, calls, direct messages). Appointment rate is how many of those actually met with your rep for an in-home estimate. This varies significantly by channel: referrals book at 75–85%; Angi leads book at 40–60%; D2D canvassing per door is 15–25%.
Set your close rate and avg job value
Close rate is the percentage of appointments that result in a signed contract. Track this from your CRM by source — close rates vary dramatically by channel. Avg job value should be your actual average invoice, not your best jobs. Use the blended average across all job types you close from this marketing channel.
Interpret the ROI
A 4× return (400% ROI) means every dollar of marketing spend generates $4 in gross profit. Below 2× usually means either close rate is too low, job value is too low, or lead quality is poor. The fastest way to improve ROI without increasing budget is improving close rate — which is why proposal quality and financing availability at point of sale are so high-leverage.
The Two Levers That Move Marketing ROI Most
Close rate improvement
Going from 28% to 38% close rate on 50 leads/month generates 5 more closed jobs. At $8,500 avg job and 36% margin, that's $15,300 in additional gross profit per month from the same marketing spend. No other lever has this magnitude of ROI impact for most contractors.
Financing at point of sale
The single most common reason homeowners delay or decline a roofing or HVAC proposal is payment — not product quality or trust. Contractors who present monthly payment options alongside the total price routinely see 20–30% improvement in close rates on jobs over $5,000.
Lead quality over volume
50 low-intent leads at 15% close rate perform worse than 25 high-intent leads at 35% close rate. Shifting budget from high-volume, low-intent channels (Angi, cold Facebook) to high-intent channels (Google LSA, referrals, organic SEO) often improves ROI without increasing spend.
Speed to lead
Home services leads convert at dramatically higher rates when contacted within 5 minutes of inquiry. A 30-minute response time on Google LSA leads typically yields 25–35% appointment rates. Response under 2 minutes can exceed 60%. CRM automation for instant lead response is one of the cheapest ROI improvements available.
Attribution discipline
Most contractors overstate marketing ROI because they count the same job to multiple channels, or attribute a job to the last channel touched instead of the originating source. Clean attribution — one job, one source, tracked from first contact to signed contract — is required for accurate ROI measurement.
Average job value
Each $1,000 increase in average job value at the same close rate and margin improves gross profit per closed job significantly. Presenting good-better-best proposal options and embedding higher-efficiency equipment tiers increases average job value without changing lead volume.
The Fastest Path to Better Marketing ROI is a Better Close
SubcontractorHub's EasyQuote builds proposals on a tablet at the home with financing embedded. Same marketing budget. Better close rate. More gross profit per dollar spent.
See How It WorksClose rate improvement typically 20–35% for installation contractors
Good-better-best proposals increase average job value
GoodLeap & Service Finance financing embedded at point of sale
Pipeline visibility by channel — track ROI from lead to close
CRM lead source tracking built in — clean attribution by default
Common Questions About Marketing ROI
How do I calculate marketing ROI for a home services business?
Marketing ROI for a contractor = (Gross profit generated by marketing − marketing spend) ÷ marketing spend × 100. Example: $3,000/month in Google Ads generates 40 leads → 65% appointment rate = 26 appointments → 35% close rate = 9 jobs → $8,500 avg job = $76,500 revenue → 38% gross margin = $29,070 gross profit. ROI = ($29,070 − $3,000) ÷ $3,000 × 100 = 869%. That's an 8.7× return on marketing spend in gross profit.
What is a good marketing ROI for a contractor?
For residential installation contractors, a healthy marketing ROI is typically 400–1,000%+ (4–10× return in gross profit). A 3× return on spend in gross profit is acceptable. Below 2× usually indicates poor lead quality, low close rate, or high CAC. High-ticket trades (solar, roofing replacement) can achieve exceptional ROI because a single $22,000 solar job at 35% margin generates $7,700 in gross profit from a single lead conversion.
What is the difference between marketing ROI and ROAS?
ROAS (Return on Ad Spend) = revenue ÷ ad spend — it measures revenue, not profit. Marketing ROI accounts for gross margin, giving a more accurate picture of whether marketing is profitable. A $3,000 campaign generating $30,000 in revenue sounds great (10× ROAS), but if gross margin is only 25%, you generated $7,500 in gross profit on $3,000 spend — a 2.5× ROI in profit, which is much more modest. Always evaluate marketing performance in gross profit, not revenue.
How does close rate affect marketing ROI?
Close rate is the highest-leverage variable in marketing ROI. If you spend $3,000/month generating 40 leads and close 10 jobs, your cost per closed job is $300. If you improve close rate from 25% to 35% on the same leads, you close 14 jobs — the same $3,000 now delivers 40% more gross profit. Improving close rate through better proposals, embedded financing, and same-day closing is often more powerful than increasing marketing spend.
What appointment rate should I expect from home services leads?
Appointment rate (the % of leads who agree to an in-home estimate) varies by channel. Google LSA leads: 55–75% appointment rate. D2D canvassing doors knocked: 15–25% in-home appointment rate (per door), much higher per interested homeowner. Angi/HomeAdvisor leads: 40–60% appointment rate but lower close rate due to competitive bidding. Referral leads: 70–85% appointment rate, highest close rate of any channel.
How do I track which marketing channels are actually generating closed jobs?
Accurate marketing attribution requires tracking at every step: lead source → appointment booked → proposal sent → job closed. Many contractors track lead volume but not which leads actually close. A channel generating 30 leads at 15% close rate is less efficient than one generating 15 leads at 40% close rate. Use your CRM to tag every lead with a source and track it through the pipeline to close. UTM parameters on your website and consistent lead source entry in your CRM are the minimum requirements.
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Book a Free DemoAll calculations are estimates based on historical information and should be verified by the user.