CPL Calculator
Work out what each lead costs from campaign spend and leads generated.
Cost per lead
What it measures
CPL divides campaign spend by the leads it produced. It is the top of funnel cost metric for any lead based business.
Why it matters
CPL only means something next to lead quality. A 20 CPL that never closes is more expensive than a 100 CPL that does.
A worked example
3,000 of spend for 60 leads is a 50 CPL. If one in ten becomes a customer, the real cost per customer is 500.
How to read and improve it
Judge CPL by source against close rate from the same source. Cheap leads from the wrong audience are the most expensive thing in marketing.
Frequently asked questions
What is a good CPL?
Work backwards: customer value times close rate sets the ceiling on what a lead is worth.
Should I optimise for cheaper leads?
Only while close rates hold. When CPL falls and close rate falls with it, you are buying worse leads, not cheaper ones.
More in Paid media: ROAS Calculator · Break Even ROAS Calculator · PPC ROI Calculator
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