Many businesses ask whether a cost per lead is good or bad, but the real answer depends on close rate, customer value, and margin. This calculator shows your break-even CPL and a target CPL that protects profit.
What this calculator does
Calculate the maximum cost per lead before profit disappears, then set a healthier target CPL.
How to use it
Enter average customer value, close rate, gross margin, and desired profit margin. The calculator estimates revenue value per lead, gross profit per lead, break-even CPL, and target CPL.
Formula and assumptions
- Revenue value per lead = average customer value × close rate.
- Gross profit per lead = revenue value per lead × gross margin.
- Target CPL = gross profit per lead × (1 − desired profit margin).
Assumptions
- Close rate should be calculated from qualified leads.
- If lead quality varies by channel, calculate break-even CPL separately by channel.
- Target CPL should preserve profit after fulfillment and marketing costs.
How to interpret your result
If your actual CPL is higher than break-even, the lead source is unprofitable unless customer value, close rate, or margin improves.
Next steps
Set profitable lead targets
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