Calculate your Return on Ad Spend, understand your funnel metrics, and optimize your ad campaigns.
ROAS (Return on Ad Spend) measures revenue generated per dollar spent on advertising. A 5:1 ROAS means $5 revenue for every $1 spent. Construction companies typically target 3-5:1 ROAS, with top performers achieving 8-10:1.
ROAS = Revenue from Ads / Ad Spend. For example, if you spend $5,000 on ads and generate $25,000 in signed contracts, your ROAS is 5:1 (or 500%). Track conversions using call tracking, form submissions, and signed contracts.
For home services and contractors, a good ROAS is 3:1 or higher. Kitchen and bath remodelers often see 4-7:1, while general contractors target 3-5:1. Seasonal businesses may see ROAS fluctuate 2-3x between peak and off-peak.
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