HVAC PPC Cost Breakdown: What's Normal vs Waste

Every HVAC contractor running Google Ads asks the same question: "Am I paying too much?" The frustrating answer from most agencies is "it depends." We think you deserve actual numbers. After managing PPC for HVAC contractors across 20+ markets—from Phoenix summers to Chicago winters—we have built a clear picture of what healthy HVAC ad spend looks like, and what qualifies as a five-alarm waste of money.

This post is the transparent breakdown we wish someone had handed us when we started. Every dollar figure comes from real campaign data, not generic industry reports. If your numbers fall outside these ranges, something in your account needs attention.

What HVAC Google Ads Actually Cost

Cost-per-click in HVAC varies dramatically based on service type, geography, and competition density. Here are the ranges we see consistently across our managed accounts:

A few things jump out. First, installation keywords cost two to three times more than repair keywords because the job value is higher—every competitor knows a $12,000 system replacement justifies aggressive bidding. Second, emergency keywords carry a premium even in smaller markets because intent is sky-high and the searcher is calling the first company they see. Third, maintenance keywords are the bargain of the bunch, and most HVAC advertisers completely ignore them.

Why Your CPC Might Be Higher Than These Ranges

If you are consistently paying above these ranges, the culprits are usually:

• Low Quality Score — Google charges you more per click when your ad relevance, landing page experience, or expected CTR scores poorly. A Quality Score of 4 or below can inflate CPCs by 50–100%.
• Broad match keyword sprawl — Your ads are triggering on searches that have nothing to do with HVAC, which tanks CTR, which tanks Quality Score, which raises CPC. It is a vicious cycle.
• No negative keyword list — Without one, you are bidding on "HVAC jobs," "HVAC salary," "DIY furnace repair," and dozens of other irrelevant terms.

Cost Per Lead Benchmarks by Service Type

CPC only tells half the story. What matters is how much you pay for a qualified lead—someone who actually picks up the phone or fills out a form. Here are the cost-per-lead benchmarks we track:

Emergency repair leads should be your cheapest because the searcher has an urgent problem and converts quickly—often within the same session. If your emergency CPL is above $100, your landing page or call tracking is broken, not the market.

Installation leads are inherently more expensive because homeowners research multiple contractors before deciding. That is normal. What is not normal is paying $275+ per installation lead, which usually signals you are targeting the wrong keywords (think "HVAC installation cost" instead of "HVAC installer near me") or your landing page does not communicate trust signals like licensing, warranties, and financing options.

Monthly Budget Framework

How much should you spend? We recommend three tiers based on your growth goals and market size:

Starter: $1,500–$3,000/month

Best for single-truck operations or contractors entering Google Ads for the first time. At this budget you can:

• Run 1–2 focused campaigns (emergency repair + one service type)
• Target a 15–20 mile radius around your shop
• Generate 20–60 leads per month depending on market
• Build enough conversion data for Smart Bidding to learn

This tier is about proving ROI before scaling. If you cannot make $1,500/month work profitably, increasing budget will not fix the underlying problems.

Growth: $5,000–$10,000/month

The sweet spot for established contractors looking to fill their schedule and grow crew size. At this level you can:

• Run campaigns across all service types (repair, installation, maintenance, IAQ)
• Expand service area to 25–40 miles
• Add remarketing campaigns to re-engage past visitors
• Test seasonal promotions and offer-specific landing pages
• Generate 60–200+ leads per month

Most of our HVAC clients live in this tier. It is enough budget to dominate local auctions without burning cash on marginal clicks.

Domination: $10,000+/month

For multi-location HVAC companies or operators in major metros who want maximum market share. This budget supports:

• Full-service-line campaigns with dedicated landing pages
• Competitor conquest campaigns
• YouTube pre-roll and display remarketing
• Local Services Ads alongside standard Search campaigns
• Brand defense campaigns
• 200–500+ leads per month across channels

At this level, the management complexity requires daily optimization. Running $10k+ without an experienced manager is how HVAC companies waste $4,000–$6,000 every month without realizing it.

Not sure if your HVAC ad spend is working? We manage PPC for HVAC contractors and can audit your account in 48 hours — no charge, no obligation. Request your free audit →

Where HVAC Ad Spend Gets Wasted

We have audited hundreds of HVAC Google Ads accounts. The same waste patterns show up in almost every one. Here is where your money is probably leaking:

1. Broad Match Keywords Without Guard Rails

Broad match tells Google "show my ad for anything related to this keyword." For HVAC, that means your ad for "AC repair" triggers on "AC repair certification," "AC repair YouTube tutorial," and "AC repair parts Amazon." We have seen accounts where 40–60% of clicks came from completely irrelevant broad match queries.

The fix: Use phrase match and exact match as your primary match types. If you use broad match, pair it with an aggressive negative keyword list and review the search terms report weekly.

2. Bleeding Into Commercial and Competitor Searches

Unless you service commercial buildings, clicks on "commercial HVAC repair" or "Trane dealer near me" are wasted. Competitor brand keywords like "Carrier authorized dealer" attract people looking for a specific brand, not your company.

The fix: Add commercial terms and competitor brand names as negative keywords on day one.

3. Display Network Enabled by Default

Google's default campaign settings include the Display Network and Search Partners. For HVAC, Display Network traffic converts at roughly one-tenth the rate of Search traffic. It looks cheap because CPCs are $1–$3, but the CPL is astronomical.

The fix: Uncheck "Google Display Network" and "Search Partners" on every Search campaign. Use Display only for intentional remarketing campaigns with separate budgets.

4. No Geographic Fencing

If your service area is a 30-mile radius but your campaigns target a 60-mile radius, you are paying for clicks from homeowners you will never serve—or you are sending a tech on a 90-minute drive that kills your margin.

The fix: Set radius targeting matched to your actual service area. Use location bid adjustments to increase bids in high-density zip codes and decrease them at the edges. Always set location options to "Presence: People in or regularly in your targeted locations" instead of the default "Presence or interest" setting, which shows your ads to people merely searching about your area.

5. Running Ads 24/7 Without Dayparting

HVAC emergency calls happen at all hours, but installation inquiries cluster between 7 AM and 9 PM. Running installation campaigns at 2 AM burns budget on low-intent clicks.

The fix: Analyze your conversion data by hour of day. Reduce bids or pause non-emergency campaigns during hours that produce clicks but no conversions.

How to Audit Your Current Spend

You do not need to hire someone to run a basic audit. Open your Google Ads account and check these four reports:

Search Terms Report

Navigate to Keywords, then Search Terms. Sort by cost, descending. Look for:

• Queries containing "DIY," "how to," "jobs," "salary," "parts," "YouTube"
• Queries for services you do not offer (duct cleaning, chimney repair, pool heating)
• Queries with competitor names or brand terms you did not intend to target

If more than 15% of your spend goes to irrelevant search terms, your keyword strategy needs a rebuild.

Geographic Report

Go to Locations, then Matched Locations (User Location Report). Check:

• Are clicks coming from cities outside your service area?
• Are there zip codes eating budget but generating zero conversions?
• Is the "Presence or interest" setting leaking spend to out-of-area searchers?

Time of Day Report

Under the schedule view, look at hour-of-day performance for hours that accumulate spend without conversions. If you see $200 in spend between midnight and 5 AM with zero leads, that is pure waste unless you run a 24/7 emergency service.

Device Report

Check performance by device (mobile, desktop, tablet). For HVAC, mobile typically drives 65–75% of conversions because homeowners search from their phone when something breaks. If desktop is eating 40% of your budget with weak conversion rates, add a negative bid adjustment.

Normal vs Red Flag Metrics

Here is a quick reference card for evaluating your HVAC account health:

A CTR below 3% is the most common red flag we see. It almost always traces back to one of two causes: your ads are showing for irrelevant queries (fix your keywords), or your ad copy is generic and does not differentiate you from the other five contractors in the auction (add pricing, guarantees, response-time promises).

A conversion rate below 5% points squarely at your landing page. We have seen HVAC landing pages that take 8 seconds to load on mobile, bury the phone number below the fold, or link to a generic homepage instead of a service-specific page. Fixing landing page fundamentals alone can double your conversion rate overnight.

Seasonal Budget Adjustments

HVAC demand follows the weather, and your budget should follow the demand. Running flat monthly spend all year means you are overspending in shoulder months and underspending during peak weeks when every lead is worth more.

Here is the budget pacing framework we use:

The critical insight: start ramping 60–90 days before peak season, not when the first heat wave or cold snap hits. Contractors who launch campaigns in April for summer and October for winter pay 25–40% less per lead than those who scramble once demand spikes. Google's bidding algorithms need conversion data to optimize, and feeding them that data early—when CPCs are cheaper—gives you a structural advantage all season long.

The ROI Math That Matters

HVAC contractors get tunnel vision on cost-per-lead and forget to zoom out to the number that actually determines profitability: customer lifetime value.

Consider this math:

• Average AC repair job: $350–$800
• Average system replacement: $6,000–$15,000
• Average maintenance agreement (annual): $200–$400
• Average customer lifespan with one HVAC company: 5–10 years
• Estimated lifetime value of one HVAC customer: $3,000–$12,000+

Now work backwards. If a customer is worth $5,000 over their lifetime and your close rate on leads is 30%, each lead is worth $1,500 in long-term revenue. Paying $75 for that lead—even $150—is a clear win when you factor in the maintenance agreements, referrals, and eventual system replacements that come from one relationship.

The contractors who win long-term are not the ones paying the lowest CPL. They are the ones who:

1. Track the full funnel — from click to call to booked job to repeat customer
2. Attribute revenue correctly — connecting Google Ads spend to actual invoices in their CRM
3. Invest in retention — using maintenance agreements to lock in lifetime value instead of chasing one-time repairs

We have worked with HVAC operators generating 8x–12x return on ad spend when you account for lifetime value. The ones losing money almost always have a follow-up problem (slow to call back, no automated booking) rather than an advertising problem.

A Quick ROI Calculation

Here is a simple formula to evaluate your Google Ads ROI:

• Monthly ad spend: $5,000
• Leads generated: 80
• Close rate: 30% = 24 new customers
• Average first-job revenue: $600
• Immediate revenue: $14,400
• Immediate ROAS: 2.88x

But add lifetime value:

• 24 customers x $5,000 LTV = $120,000
• True ROAS over customer lifetime: 24x

That is why smart HVAC companies treat Google Ads as a customer acquisition investment, not a monthly expense line item.

Ready to stop guessing and start knowing exactly where your HVAC ad dollars go? We specialize in PPC for HVAC contractors and have the benchmarks to show you what "good" looks like for your market. Get your free account audit →