ECONOMICS / MARKETING TOOLKIT

Lead generation economics.

Cheap leads can be expensive customers.

Your inputs

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Amounts use one currency. No exchange-rate conversion.

Ad spend for this lead cohortUnique leadsQualified leadsPaying customers from those leadsUse a mature cohort. Recent leads may still be moving through sales.Revenue per acquired customerVariable delivery cost per customerFollow-up cost per leadAverage sales handling cost across every lead, including leads that never buy.Contribution to retain per customer

YOUR SCENARIO / LIVE CALCULATION

Actual cost per lead: $10.00
Target cost per lead: $30.00
Break-even cost per lead: $50.00
Cost per qualified lead: $25.00
Lead qualification rate: 40%
Qualified-to-customer rate: 12.5%
Lead-to-customer rate: 5%
Acquisition + follow-up / customer: $400.00
Total contribution after acquisition: $8,000.00

Leads200

Qualified leads80

Paying customers10

CPL limits use this cohort’s observed close rate. A different audience or sales process may convert differently.

A dash means the ratio has no valid denominator or no positive allowable ad budget.

WHAT TO DO WITH THISFollow the lead past the form.

Compare qualified opportunities and customers by campaign. A lower CPL can still produce fewer customers or more sales work.

Example inputs. Edit them to explore your scenario.

Calculated in this browser. Your last valid scenario is saved on this device. A shared link includes your inputs. No ad account connection or automatic campaign changes. Tool interface is in English.

THE METHOD / WHAT IS INCLUDED

Understand the number
before you act on it.

Lead-to-customer rate = customers ÷ leads. Break-even CPL = (revenue − variable delivery cost) × lead-to-customer rate − follow-up cost per lead. Target CPL also subtracts retained contribution per customer × lead-to-customer rate. These limits are scenario budgets, not expected auction prices. Total contribution subtracts ad spend and follow-up costs from customer contribution. Use one mature, matched cohort and one revenue horizon; do not mix lifetime revenue with one-month costs.

Defaults are illustrative, not industry benchmarks. Choose inputs from the same reporting scope. A calculated opportunity is a question to test, not a guaranteed result.

KEEP WORKING

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