Tools

Cost Per Lead Calculator

What one enquiry costs, and what it costs once the unqualified half is priced in. Fill in two of the three.

Fill in any two of spend, leads and cost per lead. Add your qualification and close rates and the cheap number turns into the real one.

Everything here is worked out in your browser. Nothing you type is sent anywhere, and there is no account to make.

Leave this blank to work it out from the other two.

%

Optional. The share of leads sales accepts. Gives a cost per qualified lead.

%

Optional. Applied to qualified leads when you give a qualification rate, and to all leads when you do not.

Result

The numbers below are an example so the tool opens working. Replace them with yours.

How the number is worked out

  • A cost per lead is the cheapest number in the funnel and the least useful on its own. Two channels at the same cost per lead can be far apart once the qualification rate is applied.
  • The close rate is applied to qualified leads when you supply a qualification rate, and to every lead when you do not. Applying it to every lead when half of them were never real is how a pipeline forecast gets built on nothing.

What comes out

You will see

  • Cost per lead
  • Whichever of the three you left blank, worked out from the other two
  • Qualified leads at a rate you supply
  • Cost per qualified lead, which is the number a sales team recognises
  • Customers and cost per customer, when you add a close rate
  • A warning when all three values are entered and they do not agree

How to use it

Three steps, and the third one is the point

  1. Enter spend and leads

    Everything you paid, and the enquiries it produced. Be clear what counts as a lead before you start.

  2. Add the qualification rate

    The share sales accepts. This is where two channels at the same cost per lead stop looking alike.

  3. Add the close rate

    Applied to the qualified leads when you gave a qualification rate, and to every lead when you did not. The tool says which it used.

Why cost per lead is the least useful number in the funnel

Cost per lead is spend divided by enquiries. It is the cheapest figure to report and the easiest to improve, because you can lower it by lowering the bar.

Two channels at 25 per lead can be nothing alike. If one qualifies at 35% and the other at 10%, the real costs are 71 and 250 for the same headline number.

This is why the qualification rate is asked for on the same screen rather than left as something to work out later. The comparison people need is one field away.

The Cost Per Lead Calculator result panel, first state
Spend and leads with a qualification and close rate. The three costs come from one set of numbers.
The Cost Per Lead Calculator result panel, second state
The same spend with no qualification rate. The close rate is applied to every lead, and the result says so.

The close rate has to be applied to the right thing

A close rate measured on qualified leads and applied to every lead produces a pipeline forecast that cannot happen. It is a common error and it is invisible: both numbers are real, they just belong to different denominators.

The tool applies the close rate to the qualified leads whenever you give it a qualification rate, and to all leads when you do not. Either way, the result says which one it used.

The last line is a cost per customer from media alone. Add salaries and tools and it becomes CAC, which has its own page.

The tool

What this one does

  • Solves in three directions

    Leave spend, leads or the cost per lead blank and the tool works out that one.

  • Prices the unqualified half

    Cost per qualified lead is always higher than the headline, and the gap is what the leads sales rejects are costing you.

  • Carries through to a customer

    With a close rate you get the customers and the cost per customer from the same spend.

  • Names its own denominator

    The result says whether the close rate was applied to qualified leads or to all of them, because the two produce very different forecasts.

  • Stops at media

    Cost per customer here is media only. It does not quietly become a CAC.

  • Checks three entered values

    Disagreement of more than one percent is named rather than resolved for you.

Reading the result

What each line is telling you

Cost per lead
The headline. Easy to improve by lowering the bar, which is why it is a poor target on its own.
Cost per qualified lead
The number a sales team recognises. This is the one to compare between channels.
Cost per customer
Media spend per closed customer. Add salaries and tools and you have a CAC.
Customers
A forecast from your own rates. It holds only while those rates hold, and they move with volume.

A free tool answers one question.
A search audit answers the rest.

We look at your search visibility across Google and the answer engines, and tell you what is costing you orders. No charge for the first look.

In practice

What you can do with it

  • Compare two lead sources properly

    Run both at their own qualification rates. The cheaper source loses this comparison more often than the report suggests.

  • Set a target sales will accept

    A cost per qualified lead target survives a conversation with sales. A cost per lead target does not.

  • Work out what a pipeline costs

    Enter the customers you need and work backwards to the spend, through both rates rather than one.

  • Check a form change

    A shorter form usually lowers cost per lead and the qualification rate together. This is where you see whether it was worth it.

Questions

Cost Per Lead Calculator questions

What counts as a lead?

Whatever you decide, as long as it stays the same across every channel you compare. A newsletter signup and a demo request are both leads and they are not comparable, so mixing them makes the cheaper channel look better than it is.

What is a good cost per lead?

It depends on the close rate and the deal size behind it. A 300 lead is cheap for a 40,000 contract and impossible for a 400 one. Published benchmarks average across both.

What is the difference between cost per lead and CPA?

A lead is an enquiry and an acquisition is a completed action, usually a purchase or a signup. Cost per lead sits earlier in the funnel and is always smaller.

Should the close rate be applied to all leads?

Only if it was measured on all leads. Close rates are usually measured on qualified ones, and applying that rate to every lead inflates the forecast by exactly your unqualified share.

How do I get to CAC from here?

Add the salaries, retainers and tools that produced the leads to the spend, then divide by customers. The CAC calculator does that, and it is a larger number by definition.

Is my data sent anywhere?

No. Everything is worked out in your browser, with no account and nothing uploaded.

The rest of the set

Fifteen more, all free, all in the browser

A lead has no value until someone qualifies it, so cost per lead can fall while cost per customer rises. The gap between those two numbers is where most B2B budgets go wrong.

Where this comes up