Google Ads Budget for a Small Service Business
How to set a Google Ads budget for a small service business: a simple formula from jobs wanted to monthly spend, a worked example and tips for small budgets.
Short answer: to set a Google Ads budget for a small service business, start from the number of jobs you want, then work backwards: jobs needed ÷ close rate = leads needed, leads needed × your expected cost per lead = monthly budget. Begin with a budget you can hold for at least two to three months, so Google has enough data to improve.
The budget formula
Monthly budget = (jobs wanted ÷ close rate) × cost per lead
Example
- You want 10 extra jobs a month.
- You close 40% of leads, so you need 25 leads.
- Your cost per lead is about $60.
- Budget: 25 × $60 = $1,500 a month.
Use our free Google Ads budget calculator to run your own numbers.
Check it pays
Compare the budget with what those jobs earn. If 10 jobs bring $8,000 in profit, a $1,500 budget is easy to justify. The ROAS and break-even cost per lead calculator shows the most you can pay per lead and still make money.
What changes cost per lead
- Your trade and city. Emergency trades in big cities cost more.
- How tightly you choose keywords and negative keywords.
- The landing page. A focused page converts more clicks into calls.
- How fast you answer the phone.
Tips for a small budget
- Start with your most profitable service only.
- Target a tight area close to you.
- Run ads during the hours you can answer.
- Use a dedicated landing page. See landing page vs website for Google Ads.
- Track calls, not only clicks.
Frequently asked questions
What is the minimum Google Ads budget?
There is no official minimum, but too small a budget gives too little data to learn from. Aim for enough to get a steady stream of leads each week.
How long until Google Ads work?
You can get calls in days, but it usually takes a few weeks of data to bring cost per lead down.
Should I try Local Services Ads first?
If your trade is eligible, often yes. See Google Ads vs Local Services Ads.
Want your budget planned for you?
See our Google Ads service or ask for a free audit.
Written by Qasim Qureshi, founder of Synova Digital, who has six years of hands-on experience in local SEO and Google Business Profiles for service businesses.