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Break-even cost per lead: what can you afford to pay for a lead?

Put in your project value, margin, and close rate. See the most you can pay per lead, per booked estimate, and per signed job before the work stops paying for itself.

By the BlueSmith team · Updated

At a glance

You enter
  • Average project value
  • Gross margin
  • Share of gross profit you’ll spend to win a job
  • Leads that become booked estimates
  • Estimates you close
You get
  • Break-even cost per lead
  • Max cost per booked estimate
  • Max cost to win one signed job
How the math works
  • Max cost per signed job
  • Max cost per booked estimate
  • Max cost per lead
  • Example (not a benchmark)
What it costs
Free. No signup, no email. Arithmetic on your own numbers, not a promise of results.
35%
15%
35%
30%

Break-even cost per lead: $138

Break-even cost per lead$138
Max cost per booked estimate
$394
Max cost to win one signed job
$1,313

$25,000 project, 35% margin, 15% of gross profit for acquisition, 35% of leads booked, 30% closed.

See what we’d build for these numbers

Starts with example numbers. Change them to yours. Arithmetic only, not a promise of results.

HOW IT WORKS

Three steps. Your numbers.

  1. 01

    Enter your numbers

    Enter your average project value and gross margin.

  2. 02

    Watch it recalculate

    Choose the share of gross profit you’re willing to spend to win a job.

  3. 03

    Use the answer

    Add how many leads book an estimate and how many estimates you close.

How the math works

Max cost per signed job

Project value × gross margin is the gross profit on an average job. Multiply that by the share you’re willing to spend, and you have the most you can pay to win one job.

Max cost per booked estimate

You don’t close every estimate. Multiply the max cost per signed job by your close rate to get what you can afford for each estimate you run.

Max cost per lead

Not every lead books. Multiply the max cost per booked estimate by your lead-to-estimate rate. That’s your break-even cost per lead.

Example (not a benchmark)

$20,000 project × 35% margin × 10% share = $700 per signed job. × 30% close rate = $210 per booked estimate. × 40% of leads booking = $84 per lead.

KEEP GOING

Use it with these.

STRAIGHT ANSWERS

Questions we hear.

Is this a promise of results?

No. It shows what you can afford, not what you’ll pay. Your actual cost per lead depends on your market, offer, ads, and season.

What share of gross profit should I use?

Whatever you’d be comfortable paying on every job. Start with a number you know you can live with, then adjust once real results come in.

Should I include agency fees?

The result is a ceiling for your total cost to win a job. Ad platforms report cost per lead from ad spend alone, so leave room for agency fees, software, and setup when you compare.

My leads cost more than the break-even. Now what?

Look at your booking and close rates before you cut the budget. Faster response, better qualifying, and steady follow-up all raise the break-even.

Numbers are the start. Let’s build the system.

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