Local Services Ads Bid Ceiling Calculator

Stop guessing at Local Services Ads bids. Plug in your average job value and the percentage of leads that close to see a profit-safe maximum cost per lead, plus a conservative bid target that keeps ROI intact while still scaling volume.

Typical invoice amount from a booked lead.
Percentage of qualified leads that turn into paying jobs.
Share of total LSA leads you can actually bill. Defaults to 85%.
Keep after labor, materials, and overhead. Defaults to 35%.
Spend $1 to earn this many dollars of gross profit. Leave blank for 3×.
Used to size the monthly budget cap.

Results assume steady close rates and margins; revisit bids as seasonality, disputes, or pricing change.

Examples

  • $1,250 job, 35% close rate, 85% qualified, 35% margin, 3× ROI ⇒ max CPL $129.94, safety bid $103.95, monthly budget $2,598.80 at 20 leads.
  • $900 job, 40% close rate, defaults for other fields ⇒ max CPL $107.10 and monthly budget $2,142.00 for 20 leads.

FAQ

How should I pick the ROI multiplier?

Use your finance team’s payback requirements. Home services companies often target 3× to 5× profit ROI to cover seasonality and overhead.

What if my close rate fluctuates by channel?

Update the close rate with rolling four-week performance from Local Services Ads specifically to keep bids aligned with recent conversion quality.

Does the calculation include disputed leads?

Yes, indirectly. Lower the qualified lead percentage if many leads are invalid and refunded so the ceiling reflects true billable volume.

Can I use this for pay-per-call networks?

Absolutely. Replace the job revenue and close rate with the figures for that channel and the same economics apply.

Additional Information

  • Local Services Ads charge per lead, so translating close rate and margin into a cost ceiling protects profitability.
  • Adjust the qualified lead percentage to reflect disputes or refunds you expect Google to approve.
  • The 80% safety bid leaves room for conversion volatility while staying within your ROI target.

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