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Estimate ROI Calculator

Calculate annual revenue, time cost, and ROI from your estimating process.

Our estimate ROI calculator helps you determine how much you spend on estimating tasks and how much you earn per hour of estimating. Knowing your revenue per hour spent estimating can help you decide whether it's time to invest in estimating software or hire a dedicated estimator.

How to calculate estimate ROI

To calculate your estimate ROI, you’ll need the following information:
  • Average job value
  • Close rate (percentage of estimates that are converted into sales)
  • How many estimates produced per month
  • Average number of hours spent on each estimate
  • Hourly rate for estimating hours
The calculator will give you a snapshot of your estimating activity over a yearly period based on the information you enter. It calculates the number of estimates, jobs won, annual revenue, estimating time cost, and revenue per hour of estimating.Here’s an example to show how the calculator works:
  • Average job value: $15,000
  • Close rate: 40%
  • Estimates per month: 10
  • Hours per estimate: 3
  • Hourly rate: $75
Here are the results provided and how they were calculated:
  • Estimates per year: 120 (10 x 12)
  • Jobs won per year: 48 (40% of 120)
  • Annual revenue from estimates: $720,000 (48 x $15,000)
  • Hours spent estimating per year: 360 (3 x 120)
  • Estimating time cost: $27,000 (360 x $75)
  • Revenue per hour spent estimating: $2,000 ($720,000 / 360)
By changing variables, you can compare scenarios, such as what would happen if you took less time on each estimate or if you bid more jobs.If it only took you 2 hours per estimate because you invested in software or started using bid templates, your estimating cost would be reduced to $18,000, and your revenue per hour would increase to $3,000.If you were able to complete 15 estimates in a month instead of 10, your revenue would increase to $1,080,000, with a cost of $40,500 and a revenue per hour of $2,000.Using this comparison data can help you determine what impact investing in software or a dedicated estimator will have for your company.Houzz Pro’s estimating tool can help speed up the bidding process, reducing your estimate costs and increasing your revenue per hour spent estimating.

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