Margin One
What Is a Good Estimate Close Rate for Contractors?
A good estimate close rate for contractors is 50 percent or better; below that, marketing spend is filling your board with work that never books.
By Mark
A good estimate close rate for contractors is 50 percent or higher. That means at least half the estimates you write turn into booked jobs. Below 50 percent, your marketing spend is filling the estimate board with work that never books, and the fix is usually in the sales process, not more leads. This benchmark comes from the Home Services Metrics Scorecard that M1COS dashboards run on.
A good estimate close rate for contractors is 50 percent or better. Out of every ten estimates you write, at least five should turn into booked jobs. If you are below that, your problem is usually not lead volume, it is what happens after the lead comes in.
Estimate Close Rate = Booked Jobs ÷ Estimates Written
Write 40 estimates in a month and book 20, your close rate is 50 percent. This is one of the highest-leverage numbers in the business because it sits between your marketing spend and your revenue. Every point you gain multiplies the return on every lead you already paid for.
Here is why the 50 percent line matters. When close rate is low, marketing keeps working, leads keep coming, estimates keep getting written, and the board fills up. It feels busy. But the work never converts, so you are paying for leads and paying your team to quote jobs that go nowhere. You are buying activity, not revenue.
| Close rate | What it usually means |
|---|---|
| 50%+ | Healthy: sales process is converting the demand you paid for |
| 35 to 49% | Leaky: follow-up, pricing presentation, or lead quality is off |
| Below 35% | Broken: fix the process before spending another dollar on leads |
The common mistake is responding to a low close rate by buying more leads. That just widens the leak. If half your estimates fall through, doubling lead spend doubles the waste. Fix the conversion first: speed of follow-up, how the estimate is presented, financing options, and whether you are quoting the right customers in the first place.
Close rate also has to be read against lead quality. Cheap, low-intent leads drag it down no matter how good your sales process is. That is why cost per lead and close rate belong on the same page.
This benchmark comes from the Home Services Metrics Scorecard, the KPI catalog the M1COS dashboards run on.
Before you spend another dollar on ads, run the Margin Leak Check to find where booked revenue is slipping away. Pair this with What Is a Good Cost Per Lead for Home Services?, since close rate is what turns lead spend into actual jobs.
FAQ
How do I calculate estimate close rate?
Divide booked jobs by estimates written over the same period. Twenty booked jobs from 40 estimates is a 50 percent close rate.
Should I buy more leads if my close rate is low?
No. A low close rate means you are already wasting the leads you have. More leads just widens the leak. Fix follow-up, pricing presentation, and lead quality first.
What drags a close rate below 50 percent?
Slow follow-up, weak estimate presentation, missing financing options, and low-intent leads. Any one of them fills the board with quotes that never book.
Want these numbers on your actual books? Book a call.