Cost Per Lead Calculator
Most owners buy leads without knowing what one is worth. Enter your average sale, your close rate and your lead volume to see the real value of a single lead, and the maximum you can pay for one and still come out ahead.
One lead is worth
$1,000
average revenue per enquiry
Max cost per lead
$200
your break-even ceiling
Values the first sale only, no repeat business or referrals, so treat this as a floor.
Frequently asked
How do you calculate the value of a lead?+
Multiply your average sale value by your close rate. If your average job is $4,000 and you close one in four leads, each lead is worth $1,000 in revenue on average. That single number is what makes every other advertising decision straightforward.
What is a good cost per lead?+
There is no universal number, it depends entirely on what a lead is worth to you. A $400 cost per lead is a bargain if leads are worth $2,000 and a disaster if they are worth $300. Work out your lead value first, then decide what share of it you are willing to spend to acquire one.
How much of a lead's value should I spend acquiring it?+
Commonly somewhere between 10 and 30 percent, depending on your margins and how much you want to grow. Spending a larger share buys faster growth with thinner profit; spending less protects margin but slows you down. The calculator lets you set this and see the number it implies.
Does this account for repeat customers and referrals?+
No, and that makes it deliberately conservative. It values a lead on the first sale only. If your customers come back or refer others, each lead is genuinely worth more than this shows, so treat the result as a floor rather than a ceiling.
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