Free Business Tool
ROAS Calculator
Calculate your return on ad spend — enter monthly ad budget, revenue from ads, and gross margin to see your ROAS, profit ROAS, and whether your campaigns are actually making money.
See How SubcontractorHub Helps Contractors Track True Ad ROIAre Your Ads Actually Profitable?
Enter your ad spend, attributed revenue, and gross margin. ROAS, profit ROAS, and breakeven threshold update instantly.
Sum of all jobs closed that came from this ad channel.
ROAS
12.8×
$32,000 revenue ÷ $2,500 spend
Gross profit
$11,520
36% margin on $32,000
Profit ROAS
4.61×
Strong — generating healthy gross profit
Breakeven ROAS
2.78×
minimum to cover ad cost in GP
Net gain from ads
$9,020
gross profit minus ad spend
Estimates only. Accurate ROAS requires reliable attribution — tracking which jobs actually closed from each ad channel. Most ad platform dashboards overstate ROAS because they count view-through and assisted conversions that didn't directly drive the job.
How to Use This Calculator
Enter your monthly ad spend
Use the total spend for a single channel (Google Ads, Facebook Ads, LSA) for clean per-channel analysis. To evaluate your full ad budget, sum all channels. Include agency management fees if you use an agency — those are part of your true ad cost.
Enter revenue attributed to ads
This is the total invoice value of jobs that originated from this ad channel. Pull from your CRM filtered by lead source = [this channel]. If you don't track lead source by job in your CRM, you're flying blind — and likely underestimating or overestimating your ROAS by channel.
Set your gross margin
Use your actual blended gross margin across the jobs from this channel, not a target margin. If ad-generated jobs tend to have lower margins (because they're more price-sensitive customers), that should be reflected here. The profit ROAS and breakeven ROAS are the most actionable outputs.
ROAS Benchmarks for Home Services Contractors
Google LSA (Local Services Ads)
Typical ROAS for home services: 8×–20×. Charges per lead rather than per click, which helps control cost. High-intent homeowners. Track offline conversions from CRM to measure true revenue ROAS vs. lead-count ROAS.
Google Search Ads
Typical ROAS: 5×–15×. Depends heavily on keyword targeting quality and landing page conversion rate. Broad-match keywords in home services often drive low-quality leads — the true job-revenue ROAS on a well-managed campaign with exact/phrase match targeting runs higher.
Facebook / Instagram Ads
Typically lower ROAS than Google for home services (3×–8×) because intent is lower — homeowners aren't actively searching. Best for remarketing (website visitors, past customers) and top-of-funnel awareness in seasonal markets (storm season, hot weather).
Angi / HomeAdvisor
ROAS varies widely. The same lead sold to multiple contractors means lower close rates (10–20%), which can drive effective ROAS down to 3×–6× despite nominally high job values. Track ROAS net of all lead fees including unanswered leads.
Direct mail
Typical ROAS: 4×–10× for high-quality targeted campaigns (storm-affected neighborhoods, aged-roof targeting). Lower for broad market mail. Long attribution window — a homeowner receiving a roofing mailer may not call for 60–90 days, making attribution challenging.
Breakeven ROAS by margin tier
At 30% margin: breakeven ROAS = 3.3×. At 35%: 2.9×. At 40%: 2.5×. At 45%: 2.2×. Any channel delivering ROAS above your breakeven ROAS is generating gross profit. Below it, you're subsidizing customers from overhead or profit.
Track ROAS from Lead to Closed Job — Not Just Lead to Click
Ad platforms report ROAS based on form fills and calls — not actual signed contracts. SubcontractorHub's CRM tracks every lead from source to closed job, so you see true revenue ROAS by channel — not the inflated numbers your ad platform wants you to see.
See How It WorksLead source tracked from first touch to signed job
Revenue and margin by channel reported in real time
Pipeline visibility by ad source — not just lead volume
Close rate by channel — identify your highest-ROAS sources
Works for HVAC, roofing, and solar installation contractors
Common Questions About ROAS
What is ROAS and how do I calculate it?
ROAS (Return on Ad Spend) = Revenue generated ÷ Ad spend. If you spend $2,500 on Google Ads and the jobs attributed to that campaign generate $30,000 in revenue, your ROAS is 12× (or 1,200%). ROAS measures the revenue multiple on your ad spend — it tells you whether your ads are generating jobs, but it does not tell you whether those jobs are profitable. Profit ROAS (sometimes called POAS) accounts for gross margin and is the more meaningful metric for contractors.
What is a good ROAS for a home services business?
For residential installation contractors (roofing, HVAC, solar), a healthy ROAS typically runs 6×–15× because job values are high ($7,000–$25,000) relative to ad spend. However, raw ROAS without gross margin context can be misleading. A 10× ROAS on a 30% gross margin job generates 3× return on ad spend in gross profit — very different from 10× ROAS on a 50% margin job which generates 5× in profit. Always calculate breakeven ROAS (1 ÷ gross margin) to know your minimum viable return.
What is breakeven ROAS?
Breakeven ROAS is the minimum ROAS at which advertising becomes profitable: Breakeven ROAS = 1 ÷ Gross margin percentage. At 35% gross margin: breakeven ROAS = 1 ÷ 0.35 = 2.86×. Any ROAS above 2.86× means the ads are generating gross profit. Below 2.86×, you're spending more on ads than the jobs are worth in gross profit. This is the floor, not the target — you need significantly above breakeven to cover overhead and generate net profit.
How do I track ROAS for my Google Ads campaigns?
Google Ads ROAS tracking for home services requires conversion tracking that connects ad clicks to actual job revenue — not just form fills. Basic tracking: set up Google Ads conversion tracking for calls and form submissions. Better: use your CRM to tag every closed job with the lead source and assign it revenue. Best: use UTM parameters on all ad URLs, track lead source in CRM, and report closed job value back to Google via offline conversion imports. Most contractors only track lead conversions, not closed jobs — which overstates ROAS for channels that generate leads but don't close well.
Should I optimize for ROAS or CPA (cost per acquisition)?
For home services contractors with variable job values (a $6,000 HVAC job vs. a $14,000 HVAC job), ROAS-based optimization is generally better than CPA-based optimization because it accounts for job value. A $600 ad spend that closes a $14,000 job (23× ROAS) should be treated differently than $600 that closes a $6,000 job (10× ROAS). Target ROAS bidding in Google Ads, with offline conversion imports of actual job revenue, is the most sophisticated approach for high-ticket home services.
What is the difference between ROAS and ROI for advertising?
ROAS = Revenue ÷ Ad spend (measures revenue multiple). ROI = (Gross profit − ad spend) ÷ ad spend × 100% (measures profit multiple). A 10× ROAS sounds great, but if gross margin is 30%, the gross profit ROI is only (10 × 0.30 − 1) ÷ 1 = 200% — a 3× return in profit. ROAS is useful for comparing ad campaigns on the same margin structure. ROI is more meaningful when comparing across channels with different average job values or margin profiles.
Know Exactly Which Ads Are Paying Off
SubcontractorHub gives HVAC, roofing, and solar contractors full attribution from ad click to signed contract.
Book a Free DemoAll calculations are estimates based on historical information and should be verified by the user.