Service Profit Calculator for Ad Spend
Check whether your service ads are really paying off. Enter your figures (ex-VAT). We’ll show profit, Return on Ad Spend (ROAS), Profit on Ad Spend (POAS) and break-even instantly.
Inputs
Enter your figures (ex-VAT)
Advanced (optional)
Where to find your numbers (services)
Not sure which figures to use? Here’s where you can usually find them and how to treat revenue consistently for service work.
- Ad spend – Your media platforms (Google Ads, Meta, etc.). Make sure the date range matches everything else.
Revenue (pick one method and stick to it)
- Method A — First-year revenue (recommended for simplicity)
Use the value you expect to bill in the first 12 months from each ad-sourced client. Examples: a fencing company might use the value of the fence job won from the ad; a marketing agency might use the first-year retainer + any onboarding project. - Method B — Estimated lifetime value (LTV)
Use your typical client lifetime (e.g. 5 years) × average annual revenue. Only choose this if you already track churn/retention reliably. If you do, apply it consistently to every ad-won client.
Important: don’t mix methods or keep topping up the same client’s revenue month after month. Choose a method, attribute the revenue once, and move on. That way your ROAS/POAS stays comparable over time.
- Method A — First-year revenue (recommended for simplicity)
- Labour costs – Timesheets or job-costing (delivery hours × hourly cost, incl. contractors).
- Fixed service costs – Project-specific software/tools, travel, subcontracted elements. Pull from purchase orders or project P&Ls.
- Overheads allocation – A fair share of indirects (e.g. “overheads per seat” × seats × months on the job). Use the same allocation rule every time.
Handling long lead times (common in services)
- Expect delay – There’s often a gap between the ad click, enquiry, proposal, and close. Reliable figures may take months to mature.
- Use cohorts – Group leads by the month they enquired (e.g. “July leads”) and later attribute revenue to that cohort once deals close. This avoids constantly revisiting old months.
- Freeze revenue on attribution – When a cohort’s deals close, apply your chosen method (First-year or LTV), record the revenue once, and don’t keep adding future upsells to that same cohort.
Practical tips
- Keep everything ex-VAT (costs and revenue).
- Use UTM tags and your CRM to track ad-sourced leads to “Closed-Won”.
- Match like-for-like date ranges; exclude refunds/credit notes from revenue if they apply.
- Document your rule once (e.g. “First-year revenue, 12-month window”) so reports are comparable.
Want help deciding which method is right for your business? Learn more about our PPC approach or how we measure SEO leads.
