Which lead source is actually cheapest per signed job?
Cost per lead is only half the story. Enter what each source costs you and how often those leads sign. We will show cost per signed job and what each source returns on your average job. Think of it as a simple marketing ROI calculator for your lead sources.
The numbers below are placeholder examples, not benchmarks or Tekton Growth client results. Replace them with your own from last year's books.
| Lead source | Cost per lead ($) | Close rate (%) | Cost per signed job | Gross profit per job after lead cost |
|---|---|---|---|---|
| - | - | |||
| - | - | |||
| - | - |
Cost per signed job = cost per lead divided by close rate. It counts lead cost only, not your time spent quoting. Shared leads usually cost extra time on jobs you lose. This is an estimate based on the numbers you enter, not a forecast.
Turn cost per lead into cost per signed job
Every lead seller quotes cost per lead because it is the number that looks best. What you pay to win a job depends on two things: what each lead costs and how many of those leads you sign. This calculator divides one by the other, so a cheap lead that rarely closes and a pricey lead that often closes land on the same scale.
Where to find your cost per lead
Take what you spent on one source over a few months and divide it by the number of leads it sent. Use the billing page of the platform for spend. For leads, count real inquiries: calls, forms, and messages about work you do. Leave out spam and wrong-service calls, or the source will look better than it is. If you run Google Local Services Ads, the Leads page shows which leads were charged, not charged, or credited, as Google explains in how leads work.
Where to find your close rate
Out of the leads from that source, how many turned into signed jobs? Your CRM, your estimate log, or even last year's calendar will get you close. If you track nothing yet, use your best guess for now and start tagging every new lead with its source this week.
Reading the result
The source with the lowest cost per signed job is winning on lead cost. Check the profit column next. If a source leaves little profit after lead cost on your average job, it is costing you more than it looks, before you count the time spent on estimates you lose. Run the numbers again every quarter, because prices and close rates drift.
Want the bigger picture behind these sources? Read our guide to the best lead generation for contractors. Weighing SEO instead of paid leads? Use the SEO break-even calculator, which shows how many extra jobs SEO would need to produce to pay for itself.
Questions
What is a good cost per lead for a contractor?
There is no single good number. A lead that costs more can still be the better deal if it closes more often. Judge each source by cost per signed job and by the profit left on the job.
Should I count leads I didn't get to call back?
Yes. You paid for them. Leaving them out hides a follow-up problem and makes the source look worse or better for the wrong reason.
Does this include my time spent quoting?
No. It counts lead cost only. Sources with lower close rates usually cost extra time on estimates you lose, so keep that in mind when two sources come out close.