Cost Per Lead Calculator
Turn your ad spend, leads and close rate into the numbers that matter: cost per lead, cost per customer and the most you can afford per lead.
How to Use the Cost Per Lead Calculator
- Enter what you spent and how many leads came in.
- Add your close rate and what a new customer is worth.
- Compare your cost per lead with the most you can afford.
Cost per Lead Isn't the Goal
A $40 lead that closes 1 time in 20 costs $800 per customer. A $90 lead that closes 1 time in 3 costs $270. Service businesses that chase cheap leads often end up with more calls and fewer jobs. Track the close rate by source and judge each channel on cost per customer.
The most you can afford per lead is your customer value times your close rate. Spend above that and the ads lose money even before your other costs.
Where the Numbers Come From
Spend and clicks come from your ad account. Leads should come from your own records: calls from call tracking, forms from your inbox or CRM. Ad platforms often count a lead when someone opens a form or taps a phone number, which inflates the count.
Frequently Asked Questions
What's a good cost per lead?
It depends on what a customer is worth. Any CPL under your customer value times your close rate makes money on the first job.
Should I count calls as leads?
Count calls over about 60 seconds from new callers. Short and repeat calls inflate lead counts.
How do I raise my close rate?
Answer fast. Someone who filled in a form is usually contacting 2 or 3 businesses, and the first to call back often gets the job.
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See What Your Ad Accounts Could Do Better
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