How this calculator works
No black box - this is the arithmetic the tool runs, written out.
value per lead = close rate × job value × margin profit per lead = value per lead − cost per lead ROI % = profit per lead ÷ cost per lead × 100 cost per job = cost per lead ÷ close rate
- cost per lead
- What you pay for one lead, all in.
- close rate
- Share of leads that become signed jobs.
- job value
- Average contract value of a closed job.
- margin
- Gross margin on that job - the share of contract value you actually keep.
A lead is worth the expected gross profit it produces: how often it closes, times what it is worth when it does, times what you keep. Subtract what you paid and you have the profit on the lead itself.
Cost per job is usually the more decision-useful figure. A $90 lead sounds expensive next to a $40 one until you work out that the $90 source closes at 12% and the $40 source at 3% - $750 per job against $1,333.
What it looks like with real numbers
Starting from
- Cost per lead
- $90
- Close rate
- 25%
- Average job
- $12,000
- Gross margin
- 35%
The working
Value per lead: 0.25 × 12,000 × 0.35 = $1,050Profit per lead: 1,050 − 90 = $960ROI: 960 ÷ 90 = 1,067%Cost per job: 90 ÷ 0.25 = $360
$960 profit per lead - 1,067% ROI, $360 cost per job
Reading it: Cost per job is usually the more decision-useful number. A $90 lead that closes at 25% costs $360 per booked job; a $40 lead closing at 3% costs $1,333. The cheaper lead is nearly four times more expensive.
How the calculation runs
Four operations, in this order. Nothing is hidden behind a button.
- Multiply close rate by average job value by gross margin to get value per lead.
- Subtract cost per lead to get profit per lead.
- Divide cost per lead by close rate to get cost per booked job.
Getting your inputs right
The answer is only as good as what goes in. This is where estimates usually go wrong.
Use booked close rate, not felt close rate
Pull it from actual signed jobs over a real period. This is the input people are most optimistic about, and optimism here flatters everything downstream.
Use gross margin, not revenue
A lead is worth the profit it produces, not the contract value. Using revenue overstates lead value by a factor of three or more.
Load the true cost per lead
Include the platform spend, the agency fee, and anything else you pay to get the lead in the door.
What changes your number
A calculator applies an average. These are the things that decide where in the range you actually land.
- Close rate The most sensitive input by a distance. A source at 12% and one at 3% are different businesses at the same lead price.
- Speed to first contact Response time strongly affects close rate on inbound leads, which means it affects everything on this page.
- Lead exclusivity A shared lead sold to several contractors closes at a different rate than an exclusive one, and should not be priced the same.
- Job mix Average job value moves with the work you sell. Repair leads and full replacement leads are not comparable at the same cost per lead.
Common mistakes
Every one of these is something people genuinely do, and most of them cost real money.
- Comparing sources on cost per lead alone The cheap source is frequently the expensive one once close rate is applied. Compare cost per job.
- Using revenue instead of margin It inflates lead value enormously and makes almost any lead price look justified.
- Ignoring sales time on lost leads Gross margin does not account for the hours spent on the 75% that did not close. A source with a low close rate consumes more selling time per job than the numbers here show.
What a lead is really worth
A lead’s value is close rate × average job × margin. Subtract your cost per lead to get profit per lead, and divide cost per lead by your close rate to get your true cost per booked job. Exclusive leads usually close far better than shared ones - a higher price per lead can still win on ROI. See how HomeMatchup’s exclusive leads work.
Cost ranges reflect 2026 U.S. installed prices (BLS producer/labor data, Remodeling Cost vs. Value, and manufacturer pricing). Your real price depends on your roof, region, and pro - see the full cost guide.
Where this stops being accurate
This uses gross margin, so it is profit before overhead and before the cost of the sales time spent on the leads that did not close. Close rate is also the input people are most optimistic about - pull it from your actual booked jobs over a real period, not from memory.
This is a free estimating tool, not a quote. When you want a number somebody will stand behind, get matched with local pros - they measure the roof before they price it.
The terms on your quote, explained
A roofing quote is written in trade vocabulary. These are the words that actually change what you are paying for.
- Square
- 100 square feet of roof surface. The unit the entire trade orders, prices, and quotes in - a 2,400 sq ft roof is 24 squares.
- Pitch
- The slope, written as rise over a 12-inch run. A roof climbing 6 inches per 12 horizontal inches is "6/12".
- Decking (sheathing)
- The structural panels over the rafters that everything else fastens to. Its condition is unknown until the old covering is off.
- Underlayment
- The water-resistant layer between decking and covering. Synthetic or felt; it is the roof's second line of defense.
- Ice-and-water shield
- A self-adhering membrane at eaves and valleys that seals around fasteners. Commonly required by code in freeze-thaw climates.
- Flashing
- Metal that seals the joins - around chimneys, walls, valleys and vents. Most roof leaks are flashing failures, not covering failures.
Cost Per Lead & Lead ROI Calculator questions
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