How Much Do Missed Calls Really Cost a Small Business?

By Manny Larcher

Search this question, and one figure shows up again and again: about 62% of small-business calls go unanswered. Trace it back, and it comes from a study of 85 businesses. Many of the other numbers in circulation come from companies that sell call-answering software. That doesn't make them wrong, but none of them describe your business. Your own phone records will.

The formula

Monthly cost of missed calls = calls per month × share missed × share that were new business × your close rate × average job value

Calls and share missed: most business phone systems log missed and abandoned calls. Pull 30 days.
Share that were new business: not every missed call is a sale. Exclude vendors, spam, and existing customers checking in.
Close rate: how often an answered inquiry becomes a paying job.
Average job value: use your typical first ticket, not your best month.

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A worked example

These numbers are illustrative, not industry data. A heating and cooling company takes 600 calls a month and misses 15% (90 calls). Half are new-business inquiries, so 45. It closes 30% of the inquiries it answers, at an average first ticket of $400.

45 × 0.30 × $400 = $5,400 a month in jobs at risk.

Some callers try again, so discount the result. If a third call back, the real loss is closer to $3,600 a month, or about $43,000 a year.

Compare it with the cost of answering

The Bureau of Labor Statistics puts the median receptionist wage at $18.27 an hour, or $38,010 a year as of May 2025, before payroll taxes and benefits, and that covers business hours only. Your options range from adding staff to an answering service, an AI receptionist, or a mix: AI after hours and for overflow, and people during the day. Compare your formula result with each option's monthly cost, and the decision usually makes itself.

What the number leaves out

The formula counts the first job only. It misses the repeat business a new customer brings, the premium paid for after-hours emergencies, and the cost of staff stopping work to pick up the phone. If those matter in your trade, treat your result as a floor.

Run your own numbers with YourInfoDaily's missed-call calculator. [LINK: calculator]

See what an AI receptionist could handle for your practice, shop or restaurant. Share a few details and YourInfoDaily will match you with providers in your region. Matching is free. Get matched: [Click here to Learn More]

Sources

U.S. Bureau of Labor Statistics — "Receptionists, Occupational Outlook Handbook"
BK Web Designs — summary of the 85-business call study