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4,800 spent for 160 leads
The campaign costs 4,800. It produces 160 leads. Twenty of those leads become customers in the same period. Keep the customers inside that lead list.
Campaign spend: 25% lower
Change campaign spend to 3,600 while keeping the other example values the same.
Campaign spend: 25% higher
Change campaign spend to 6,000 while keeping the other example values the same.
Interactive chart
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Quick answer
What does the Cost per lead calculate?
What does one lead from this campaign cost? This calculator uses campaign spend, leads, and customers from those leads to estimate spend per lead immediately in your browser.
With the values currently entered, the result is $30.00 — per lead. It also shows close rate, cost per customer, leads, and customers.
How to use the Cost per lead
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Campaign spend
- Leads — entered in leads
- Customers from those leads — entered in customers
Cost per lead formula
Cost per lead = campaign spend ÷ leads. Close rate = customers ÷ leads. Cost per customer = campaign spend ÷ customers.
Assumptions
- Google Ads defines cost per action as marketing cost divided by the number of actions. A lead is the action on this page.
- Customers should be the leads from this spend that became customers. Later repeat orders sit outside the cost-per-customer line.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Defines cost per action as marketing cost divided by the number of actions. This page treats a lead as the action.
Marketing and salesUS Small Business AdministrationScope: US small-business planning; method is generalTells you to set marketing and sales goals, including a sales increase, and to compare marketing and sales costs with the revenue those efforts generate.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Cost per lead example and edge cases
Google Ads defines cost per action as marketing cost divided by the number of actions. On this page the action is a lead. Divide campaign spend by the leads you count. A second line divides the same spend by the customers closed from those leads.
Example: 4,800 spent for 160 leads
The campaign costs 4,800. It produces 160 leads. Twenty of those leads become customers in the same period. Keep the customers inside that lead list.
- Campaign spend
- 4,800
- Leads
- 160 leads
- Customers from those leads
- 20 customers
Calculated result$30.00per lead
Cost per lead is $30. The close rate is 12.5 percent. Cost per customer from this spend is $240. Months of margin after the sale are the customer acquisition payback calculator.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the cost per lead first. The cost per customer is the same spend spread over fewer people, so it is higher whenever some leads stay open.
- The close rate uses the leads and customers you type. A click, a form fill, and a qualified call are different counts. Pick one and keep it.
Edge cases worth checking
Clicks are sitting in the lead count
Google Ads can count a click, a form, or a purchase as the action. This page divides by the lead count you type. If that box is clicks, the result is cost per click.
Customers from an older campaign are in the close rate
The 20 customers should come from these 160 leads. Customers from last quarter’s spend raise the close rate and shrink the cost per customer for a campaign that did not produce them.
What changes the result most
Campaign spend
Use a current amount for campaign spend. Include fees or recurring costs that belong in the same figure.
Leads
Measure leads with the same unit shown beside the input. Convert first if your source uses another unit.
Customers from those leads
Measure customers from those leads with the same unit shown beside the input. Convert first if your source uses another unit.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Campaign spend: 25% lower
3,600$22.50per lead
Campaign spend: 25% higher
6,000$37.50per lead
Leads: 25% higher
200 leads$24.00per lead
Common mistakes
Check campaign spend
Google Ads defines cost per action as marketing cost divided by the number of actions. A lead is the action on this page. Make sure this matches the number you enter.
Keep customers from those leads consistent
Customers should be the leads from this spend that became customers. Later repeat orders sit outside the cost-per-customer line. Use the same units and time period throughout the calculation.
Do not rely on one cost per lead scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What does one lead from this campaign cost?
It does not replace a quote, contract, accountant, or local employment guidance.