Google Local Services Ads Cost Calculator
Enter what a job is worth, your margin and close rate, what you pay per lead, how many leads you want and the share Google may credit back. You get the monthly spend, the booked jobs it buys, the cost per booked job and the most a lead can cost before the jobs stop paying for it.
Estimate Your Local Services Ads Cost
The form holds an illustrative example, not a market price: a $600 job at a 45% gross margin, a 30% close rate, $60 per lead, 40 leads a month and 10% of leads credited. Replace it with your numbers; the results update as you type.
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The math
Local Services Ads Cost Formula With a Worked Example
Local Services Ads charge per lead, not per click, so the monthly cost is the number of leads you pay for times the price of each. Credits come off that count: a lead Google credits back costs nothing.
Worked example, with illustrative numbers. You want 40 leads a month and expect Google to credit 10% of them, so you pay for 36. At $60 a lead that is $2,160 a month. A 30% close rate on the 40 leads books 12 jobs, so each booked job costs $2,160 ÷ 12 = $180.
Each $600 job at a 45% gross margin leaves $270. Twelve jobs bring in $3,240 of gross profit, and after $2,160 of leads the month keeps $1,080 before overhead. The break-even is the lead price at which those two numbers meet: $270 × 0.30 ÷ 0.90 = $90 per lead you pay for.
Credits lift the break-even, because some leads arrive at no charge; with no credits the same jobs would set it at $81. For leads from Search ads, where you pay per click, the cost per lead calculator does the same math from spend and leads.
leads × (1 - credited share)40 × 0.90 = 36leads you pay for × cost per lead36 × $60 = $2,160.00leads × close rate40 × 0.30 = 12monthly spend ÷ booked jobs$2,160 ÷ 12 = $180.00job value × gross margin × close rate ÷ (1 - credited share)$600 × 0.45 × 0.30 ÷ 0.90 = $90.00monthly spend ÷ 30.4$2,160 ÷ 30.4 = $71.05By close rate
Cost per Booked Job and Break-Even by Close Rate
The same illustrative month: 40 leads at $60, 10% credited, $2,160 of spend, and a $600 job at a 45% margin. Only the close rate moves.
| Close rate | Booked jobs | Cost per job | Break-even per lead | Profit after leads |
|---|---|---|---|---|
| 15% | 6 | $360.00 | $45.00 | -$540.00 |
| 20% | 8 | $270.00 | $60.00 | $0.00 |
| 25% | 10 | $216.00 | $75.00 | $540.00 |
| 30% | 12 | $180.00 | $90.00 | $1,080.00 |
| 40% | 16 | $135.00 | $120.00 | $2,160.00 |
Answering the phone moves this more than the bid does. At a 20% close rate the $60 lead only breaks even; at 30% the same price leaves $1,080 a month. Google also charges for a missed call during business hours when the caller stays on the line for more than 20 seconds, so an unanswered call can cost a lead and book nothing.
How you pay
How Local Services Ads Charge
From Google's Local Services Help pages, as of November 2026. Our Local Services Ads guide covers setup, ranking and verification.
You pay per valid lead
You pay only when someone gets in touch from your ad, never for a click. Per How leads work, a valid lead is a call you answer or return and speak on, a missed call in business hours where the caller stays on the line more than 20 seconds, a text or email, or a booking request (US and Canada only).
Your bid is a maximum
Google's ad rankings page says your bid is the most you are willing to pay for a lead, though you may end up paying less. Listings are ordered by an auction that weighs the bid and profile quality, and Google recommends the Maximize Leads bid mode.
Prices vary by lead
Lead prices can vary with your location, the job type, the type of lead and your bidding mode. Message leads are typically priced lower than the matching phone lead, though not always. Google's How leads work page gives no average price, which is why the calculator asks for yours.
Low-quality leads are credited automatically
Leads judged invalid or low quality at first contact are not charged. Charged leads are reassessed over time and credited automatically if later judged low quality, in most cases within 30 days. The original charge still shows on the invoice.
Some leads are never credited
Google no longer credits leads for a job type or an area you do not serve, so your job types and service area are the protection. Lead credits are not available for health care, tax specialists or advertisers in EMEA.
The budget caps the month
In the Local Services dashboard you set an average weekly budget. One week can run over it, but the month never passes the monthly max, and once that is reached the ad stops showing for the rest of the month unless you raise the budget.
Performance Max
The Move Into Google Ads as Performance Max
Google is moving existing Local Services Ads into Google Ads as a Performance Max campaign type with pay-per-lead goals. The pay-per-lead math stays the same, so the calculator works before and after. Our Local Services Ads vs Google Ads guide covers how to split budget with Search.
| Question | Local Services dashboard | Google Ads, pay-per-lead goals |
|---|---|---|
| What you pay for | Valid leads | Still valid leads, such as calls and messages, not clicks |
| Where the ads show | Google Search and Google Maps | Only Google Search and Google Maps, in the same ad positions |
| Budget | An average weekly budget and a monthly max | A daily average budget, the old weekly budget ÷ 7, with the month capped at daily × 30.4 |
| Bidding | Bid modes, including a manual maximum per lead | Manual bidding and industry-level Target CPA are deprecated; separate category targets in one campaign become one campaign-level Target CPA |
| Reporting | Leads inbox and the Billing menu | "Conversions" shows the leads you are charged for |
| In this calculator | Enter your average cost per lead or your bid | Enter your average cost per lead or the campaign's Target CPA |
Who moves when. Per Google Ads Help, the first phase began in August 2026 for select US home and storefront services: plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control and moving. Late 2026 brings broader groups, such as service-area businesses without a storefront; 2027 brings non-US accounts and every remaining category. As of November 2026, new pay-per-lead campaigns cannot be created directly in Google Ads.
Fix the math
When Your Lead Price Is Above Break-Even
A lead that costs more than it earns has three causes, and only one of them is the bid.
Too few leads book
At a 15% close rate the example's break-even is $45, so a $60 lead loses $540 a month. Missed calls inside business hours can still be charged.
Answer faster and turn on messages
Answer every call in your listed hours and reply to messages quickly. Google says message and booking leads can raise the chance of a lead, especially on nights and weekends when no one can pick up.
Leads for work you do not want
Google no longer credits leads for job types or areas you do not serve, so every service and area left switched on is a lead you agree to pay for.
Trim job types and service area
Switch off job types with low value or low close rates, and draw the service area around where you book profitably. Our pages for garage door, locksmith, water damage, junk removal, tree service and glass repair describe how we run each trade.
The profile ranks low
The auction weighs your bid and your overall profile quality, so a thin profile has to bid more to show at all.
Build the profile
Add photos and keep the profile complete and current. Google says higher quality profiles, including those with images, may rank higher and may also pay lower costs per lead.
How much do Local Services Ads cost?
You pay for each valid lead, so the monthly cost is the leads you pay for times the price of each. Google says lead prices vary with location, job type, lead type and bidding mode, and its How leads work page gives no average price. In the illustrative example, 40 leads with 10% credited at $60 each cost $2,160 a month.
Do you pay for clicks on Local Services Ads?
No. You pay for valid leads: a call you answer or return and speak on, a missed call in business hours where the caller stays on the line for more than 20 seconds, a text or email, or a booking request in the US and Canada. Google says that stays the same after the move to Performance Max with pay-per-lead goals.
Is my bid what I pay per lead?
Not always. Google's ad rankings page says your bid is the most you are willing to pay for a lead, though you may end up paying less. If you enter your bid in the calculator, read the monthly spend as a ceiling. In Google Ads, manual bidding is no longer supported for pay-per-lead campaigns, so enter your average cost per lead or the campaign's Target CPA.
How do Local Services Ads lead credits work?
Leads Google judges invalid or low quality when the person first makes contact are not charged. Charged leads are reassessed over time and credited automatically if later judged low quality, in most cases within 30 days, and the original charge stays on your invoice. Leads for job types or areas you do not serve are no longer credited.
Am I charged twice when the same person contacts me again?
No, as long as there is contact within 15 days and it comes from the same phone number or email address. After 15 days without activity, a new call or message from that person is a new lead and is charged if it meets the valid lead criteria.
What is a good cost per lead for Local Services Ads?
One below your break-even: job value × gross margin × close rate ÷ (1 - credited share). For a $600 job at a 45% margin, a 30% close rate and 10% of leads credited, that is $90 per lead you pay for. A published average says nothing about your job value or close rate, and those two numbers set the figure.
How do I set a Local Services Ads budget?
Work out the monthly spend for the leads you want, then divide it. In Google Ads, Google caps the month at the daily average budget × 30.4, so the daily average is the monthly figure ÷ 30.4. Google turns an old weekly budget into a daily one by dividing by 7, so the matching weekly budget is the daily figure × 7.
Does the calculator store my numbers?
No. The math runs in your browser, and nothing you type is sent to us or saved anywhere.
Free audit
Want Us to Check Your Lead Costs?
Send us the account and the numbers you entered. We tell you whether we found what is pushing the cost per booked job up, in Local Services Ads or Search, and name one or two issues before any work starts.
- Google Partner agency
- Home-service accounts
- No obligation
Sources
Sources and Related Pages
- Local Services Help, How leads work: support.google.com/localservices/answer/7195435. You pay for valid leads; what counts as a valid lead; prices vary by location, job type, lead type and bidding mode; message leads typically priced lower; average weekly budget and monthly max; follow-ups within 15 days not charged again. Read November 10, 2026.
- Local Services Help, About ad rankings: support.google.com/localservices/answer/7527305. The bid is the most you are willing to pay for a lead, though you may pay less; Maximize Leads recommended; message and booking leads; profiles with images may rank higher and pay lower costs per lead. Read November 10, 2026.
- Local Services Help, About Automated Local Services Ads lead credits: support.google.com/localservices/answer/15100654. Automatic credits, applied within 30 days in most cases, original charge kept on the invoice; no credits for job type or area not served. Read November 10, 2026.
- Google Ads Help, Local Services Ads transition to Performance Max campaigns with pay-per-lead goals: support.google.com/google-ads/answer/17213585. Migration phases; same Search and Maps positions; weekly budget ÷ 7 and the 30.4-day cap; manual bidding and industry-level Target CPA deprecated; no new pay-per-lead campaigns in Google Ads yet. Read November 10, 2026.
- Logical Gecko, Google Local Services Ads: The 2026 Guide for Contractors.
- Logical Gecko, Local Services Ads vs Google Ads for Home Services.