The Tradesman’s True ROI Calculator
Stop guessing your profitability. This customizable Google Sheet allows you to plug in your job value, conversion rate, and Cost Per Qualified Lead (CPL) to calculate your exact ROI.
The Transparency of Marketing Investment
Many agencies hide behind vanity metrics like “impressions” or “likes.” The only metric that matters to a tradesman is ROI. When your marketing is working, it should feel less like a cost and more like a predictable machine for Lead Volume. This calculator demystifies the process, making the return on your digital marketing investment as clear as a line item on an invoice.
How to Calculate Your True ROI (The 4 Key Inputs)
Input 1: Average Job Value (AJV)
Definition: The average revenue you earn per completed job, after materials but before overhead.
Action: Go into your last 12 months of invoices. Total the revenue and divide by the number of jobs. This is your AJV.
Input 2: Lead-to-Job Conversion Rate (CR)
Definition: The percentage of qualified leads (calls, form fills) that turn into a paid, booked job.
Action: Count how many qualified leads you received last month. Count how many of those became jobs. Divide Jobs / Leads to get your CR. (e.g., 10 Jobs / 50 Leads = 20% CR).
Input 3: Cost Per Qualified Lead (CPL)
Definition: Your total monthly marketing spend (ads + agency fees) divided by the number of qualified leads generated.
Action: Sum your total marketing spend (e.g., $2,000). Divide by the number of qualified leads (e.g., 50). This results in a CPL of $40.
Input 4: Gross Profit Margin (GPM)
Definition: The percentage of revenue remaining after subtracting Cost of Goods Sold (materials, direct labor).
Action: If a $500 job costs $200 in materials/labor, your gross profit is $300, or a 60% GPM. This is the crucial number for true ROI.
The Results-Oriented Calculation: Your True ROI
The calculator uses the following formula to determine your gross return for every $1 spent on marketing (Marketing ROI):
Marketing ROI = ( (AJV * CR * GPM) – CPL ) / CPL
If your result is 1.5, it means every $1 you spend on marketing generates $1.50 in gross profit. Our job is to build a system that consistently delivers a 2.0x ROI or higher, making your marketing budget a profit center, not a cost center.
We Guarantee the ROI. You Verify It.
No smoke and mirrors. We tie every service we offer back to your CPL and AJV. Get the transparent, results-oriented marketing partner your business demands.
