Free Calculator

Skip Tracing ROI Calculator

Calculate your skip tracing return on investment instantly. See exactly how much profit you'll make from your skip tracing investment based on your deals, conversion rate, and costs.

Selecting a strategy auto-fills industry benchmarks
How many property owner records will you trace?
% of traced leads that become deals (typical: 2-5%)
$
Average profit per closed deal (wholesale fee, flip profit, commission)
$
Direct mail, PPC ads, signs, etc. (optional)
% of records that return valid contact info (Tracerfy: 70-95%)

Your ROI Breakdown

Deals Closed/Month

0

Gross Revenue

$0

Total Costs

$0

Net Profit/Month

$0

Return on Investment (ROI)

0%

Cost Breakdown
Skip Tracing Cost:
$0
Monthly Subscription:
$0
Marketing Costs:
$0
Cost Per Matched Lead:
$0
Cost Per Deal (CPA):
$0
12-Month Projection
Annual Deals

0

Annual Revenue

$0

Annual Profit

$0

Cost Comparison: Tracerfy vs Others

See how much you'd save using Tracerfy vs other providers for the same volume:

Provider Monthly Cost Annual Cost vs Tracerfy

Ready to Maximize Your ROI?

Start skip tracing with Tracerfy at $0.02/lead. No subscriptions, no contracts.

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How to Calculate Skip Tracing ROI

Understanding your skip tracing ROI is critical for scaling your real estate business profitably. Here's the complete formula:

ROI Formula
ROI % = (Net Profit / Total Investment) × 100

Where:
• Net Profit = (Deals Closed × Profit Per Deal) - Total Costs
• Total Costs = Skip Tracing Cost + Subscription Fees + Marketing Costs

Step-by-Step Example

Let's calculate ROI for a wholesaler skip tracing 1,000 records per month:

  1. Skip Tracing Cost: 1,000 records × $0.02 (Tracerfy) = $20
  2. Match Rate: 80% match rate = 800 valid contacts
  3. Conversion Rate: 3% conversion = 24 deals per year (2/month)
  4. Profit Per Deal: $8,000 wholesale fee × 2 deals = $16,000/month
  5. Total Costs: $20 skip tracing + $500 marketing = $520/month
  6. Net Profit: $16,000 - $520 = $15,480/month
  7. ROI: ($15,480 / $520) × 100 = 2,977% ROI

Why Cost Per Deal Matters More Than Cost Per Lead

Many investors focus on cost per lead ($0.02 vs $0.12), but what really matters is cost per acquisition (CPA)—how much you spend to close one deal.

Scenario Cost Per Lead Conversion Rate Cost Per Deal
Tracerfy (Quality List) $0.02 3% $0.67 per deal
PropStream (Same List) $0.12 + $99 sub 3% $103 per deal
Cheap Provider (Poor Data) $0.01 0.5% $2 per deal

Key Insight: Tracerfy's $0.02/lead with 70-95% accuracy delivers the lowest cost per deal because accuracy drives conversion.

Industry Benchmarks (2026)

According to BiggerPockets and industry surveys:

Strategy Conversion Rate Avg Profit/Deal Leads Per Deal
Wholesaling 2-5% $5,000-$15,000 200-500
Fix & Flip 1-3% $25,000-$50,000 330-1,000
Buy & Hold 1-2% $10,000-$30,000 equity 500-1,000
Agent Lead Gen 3-8% $3,000-$8,000 commission 125-330

How to Improve Your ROI

  • Target Better Lists: Probate, pre-foreclosure, and tax delinquent lists convert 2-3x higher than generic absentee
  • Follow Up Consistently: 5-7 touches increases conversion by 50-80%
  • Use Enhanced Skip Tracing: For high-equity deals, Enhanced Skip Tracing with relatives pays for itself
  • Lower Skip Tracing Costs: Switch to Tracerfy ($0.02 vs $0.12+ elsewhere) to reduce CPA by 80%+
  • Improve Sales Skills: Better scripts and objection handling can double conversion rates
  • Track Everything: Use a CRM to measure what's working and optimize campaigns

Common ROI Mistakes

  • Not Tracking Costs: Many investors underestimate total acquisition costs (VA labor, CRM, phone systems)
  • Ignoring Match Rate: A $0.01/lead service with 40% accuracy costs more per valid contact than $0.02 with 80% accuracy
  • One-Call-and-Done: Giving up after one attempt wastes 80% of your skip tracing investment
  • Wrong List Type: Skipping generic owner-occupied homes yields 0.5% conversion vs 5% for targeted probate
  • Subscription Fees Add Up: $99-$119/month subscriptions cost $1,188-$1,428/year—more than 59,400 Tracerfy traces!

FAQ: Skip Tracing ROI

With proper execution, skip tracing ROIs of 1,000-3,000% are realistic for wholesalers. For example, spending $520/month (skip tracing + marketing) to make $15,000/month profit = 2,885% ROI. Fix & flippers see 500-1,500% ROI due to higher deal costs but larger profits.

Most investors close their first skip-traced deal within 30-90 days. Faster results come from: (1) Highly motivated lists (probate, foreclosure), (2) Consistent follow-up systems, (3) Strong sales skills. Beginners should expect 60-90 days; experienced investors 30-60 days.

Absolutely. A service with 40% match rate means you need 2.5x more records to get the same number of valid contacts. Example: To get 800 contacts, you need 1,000 records at 80% match (Tracerfy) vs 2,000 records at 40% match (cheap provider). That's $20 vs $20 (same cost), but the cheap provider wastes your list faster.

For most investors, pay-per-lead (like Tracerfy) offers better ROI because you only pay for what you use. Subscriptions ($99-$119/month) make sense if you trace 5,000+ leads monthly AND the per-lead price is low enough to offset the subscription. For beginners tracing 500-2,000 leads/month, pay-per-lead wins.

Track these in your CRM: (1) Records traced, (2) Valid contacts returned (match rate), (3) Contacts reached, (4) Appointments set, (5) Offers made, (6) Deals closed, (7) Total revenue, (8) Cost per deal (CPA). This data lets you optimize every stage of your funnel.

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70-95% accuracy • $0.02/lead • No subscriptions • Results in minutes

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