Free calculator
Lead Value Calculator
Find out what one enquiry is worth to your business, the most you can pay for it before leads cost more than the customers they bring, and — optionally — a lower ceiling that keeps the profit you want on every customer.
How much can I afford to pay for each lead?
What a new customer typically pays
Materials, labour on the job, fees
Nothing is saved or sent anywhere.
Result
Enter your numbers
The formulas
Contribution per customer = revenue − costs to serveExpected value per enquiry = contribution × close rateBreak-even cost per lead = expected value per enquirySpending ceiling = (contribution − profit to keep) × close rateWorked example
A customer pays $200 and costs $120 to serve, so each customer contributes $80 before lead costs. If 25% of enquiries become customers, an enquiry is worth 80 × 0.25 = $20 on average — your break-even cost per lead, before other acquisition costs and overhead.
To keep $40 per customer after paying for leads, only $40 per customer is left for leads, so the ceiling is 40 × 0.25 = $10 per enquiry.
What the result means — and what it does not
- It is an expected value, not a guaranteed return. Some enquiries become customers, most do not.
- A lead source with a lower close rate is worth less per enquiry, even when its leads are cheaper.
- Fixed overhead is not included; break-even here means the lead pays for itself, not that the business is profitable.
Common questions
What is the difference between break-even and the spending ceiling?
Break-even is the most you can pay per enquiry and still recover it, on average, from the customers those enquiries become — leaving no profit on them. The spending ceiling is lower: it keeps the profit per customer you choose after paying for leads.
Should I use revenue or profit per customer?
Profit after the costs of serving the customer. A $200 job that costs $120 to deliver can only fund $80 of acquisition, however you get the lead. Using revenue would overstate what a lead is worth by more than double here.
What if customers come back and buy again?
Then a lead is worth more than one sale. Enter the contribution you expect from a customer over the period you care about — for example their first year — and say so when you use the number.