- Close rate = signed jobs ÷ estimates actually run, from the same group of homeowners.
- Wait for the sales cycle before you call the number final.
- Split it by lead source and project type. The blended number hides the story.
- Compare yourself to your own past numbers, not someone else’s benchmark.
What counts in the math
The bottom of the fraction is estimates you actually ran: you were in the house, or on the call, and gave a price. Not leads. Not appointments that no-showed. Those belong to your booking rate and show rate.
The top is signed contracts from that same group of estimates. A job that signs this month from an estimate you ran three months ago belongs to the earlier group.
How to measure it cleanly
A clean close rate takes a little bookkeeping. A CRM makes it easy, but a spreadsheet works.
- Pick a period, like one month of estimates
- List every estimate you ran in that period
- Mark each one signed, lost, or still open
- Wait until most are decided, then divide signed by total run
- Do the same for each lead source and project type
Example (example numbers, not a benchmark)
You ran 20 estimates in March. By the end of May, 5 had signed, 11 had said no or gone quiet, and 4 were still deciding. Your March close rate is 25% for now (5 ÷ 20), and it may rise if any of the 4 sign.
Split by source, you find referrals closed 3 of 5 and ad leads closed 2 of 15. Same company, same estimator. The blended 25% hid both numbers.
Why there’s no universal benchmark
Close rates move with things that have nothing to do with how good you are. Bigger projects close less often than small ones. Referral leads close better than ad leads. Homeowners who saw a price range first close better than those who didn’t. Some markets expect three bids on every job.
A published average blends all of that. Your own close rate, tracked month to month and by source, is the only benchmark that tells you anything.
What to do with the number
Your close rate feeds straight into what you can afford per lead and how many leads you need. If it drops, look at what changed: the lead source, the qualification, the proposal, or the follow-up. If it climbs, you can afford to pay more for each booked estimate.
