Google Ads Budget Calculator

Work out what you should spend on Google Ads from your own numbers, not a guess. Enter what a job is worth, how often you close a lead, and how many leads you want. You will get your target cost per lead, a recommended monthly ad budget, and the daily budget to type into Google Ads.

Your numbers
Your budget

Each lead is worth

$400

You can afford to pay per lead

$40 – $80

Recommended monthly ad budget

$1,000 – $2,000

Average daily budget to enter in Google Ads

$33 – $66

The formula

How This Calculator Works

There is no industry-average number that tells you what to spend. Your budget comes from four of your own figures, and the arithmetic is simple enough to do on a napkin.

  • What a lead is worth. Average job value multiplied by your close rate. A $1,200 job closed one time in three makes each lead worth about $400 in revenue.
  • What you can afford per lead. A healthy range is 10 to 20 percent of that revenue, so $40 to $80 in the example above.
  • Your monthly budget. Target cost per lead multiplied by the number of leads you want. Twenty five leads at $40 to $80 is $1,000 to $2,000 a month.
  • Your daily budget. The monthly figure divided by 30.4, because that is the number Google itself uses for a month.

The full reasoning behind each step, with real client numbers, is in our guide on how much a service business should spend on Google Ads.

Straight from Google

How Google Ads Budgets Actually Work

Budgets in Google Ads are set per campaign, per day, and the rules trip up almost every owner the first time they see a charge that looks wrong.

  • You set an average daily budget for each campaign, not a monthly one.
  • Google can spend up to twice your average daily budget on any single day when demand is high.
  • It will never charge you more than 30.4 times your average daily budget in a month, because 30.4 is the average number of days in a month (365 divided by 12).
  • So a $50 daily budget can produce a $100 day, but never more than about $1,520 in the month.

That is why a $100 day on a $50 budget is not a billing error. It balances out across the month. It is also why you should set your daily figure as your monthly target divided by 30.4, rather than by 30 or 31.

Reality check

What Leads Actually Cost In The Trades

The calculator tells you what you can afford. The auction decides what leads cost. When the two do not overlap, that gap is the real problem, and no budget number fixes it on its own.

  • Plumbing, $60 to $120 a lead. A new account we built produced 89 tracked leads at $92 each in its first 90 days. See the plumbing playbook.
  • HVAC, $50 to $150. Emergency repair sits at the low end, replacement at the high end. More on the HVAC page.
  • Roofing, $80 to $200. Replacement keywords justify the top of that range.
  • Restoration and remodeling, $100 to $300. Expensive leads, but a single job can be worth five figures.
  • Pest control, $30 to $80. Cheapest of the trades, and recurring plans make each lead worth more than the first visit.

Two things decide where you land in those ranges: the junk you filter out, and whether calls are counted. Our guides on negative keywords and conversion tracking cover both. If you also want to weigh Search against Google Guaranteed listings, read Google Ads versus Local Services Ads.

Frequently asked questions

How much should I spend on Google Ads per month?

For most service businesses the realistic starting point is $1,500 to $2,500 a month in ad spend, because that is what it takes to buy enough clicks for reliable data in a competitive trade. The right number for your business comes from your job value, close rate and the number of leads you want, which is exactly what this calculator works out.

How does Google Ads calculate a daily budget?

You set an average daily budget per campaign. Google may spend up to twice that amount on a busy day, but it will never charge you more than 30.4 times your average daily budget in a month, because 30.4 is the average number of days in a month. To convert a monthly figure to a daily one, divide by 30.4.

What is a good cost per lead for a service business?

A healthy target is 10 to 20 percent of the revenue a lead brings in. If your average job is $1,200 and you close one lead in three, each lead is worth about $400, so paying $40 to $80 per lead leaves a strong margin.

Is $500 a month enough for Google Ads?

In most trades, no. At $20 a click that budget buys about 25 clicks a month, which is far too little data to judge performance or to train Google’s bidding. If $500 is the ceiling, narrow to one service and one small area rather than spreading it thin.

Does this calculator include agency management fees?

No. The figures here are ad spend only, which is what you pay Google. Management, whether you do it yourself or hire it out, is a separate cost.

Other trades

Google Ads Budgets By Trade

We run Google Ads for service businesses and trades. Explore the playbook for plumbers, HVAC companies, roofers, contractors and solar installers.

Is your current budget actually working?

The calculator tells you what to spend. The free check tells you whether the money you already spend is producing leads or leaking. Two minutes, no login, no obligation.

Free Google Ads Audit
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