Free Lead to Customer Value calculator with clear step-by-step results.
Traces a lead through three qualification stages to a won customer, then values that customer on gross-margin lifetime value rather than first-year revenue. Dividing back by lead volume gives the value of a single lead, which is the number that sets a defensible cost-per-lead ceiling.
Customers won
Customers = leads x MQL rate x sales accepted rate x win rate
Value per lead
Per lead = customers x (first year value x lifetime years x gross margin) / leads
Because revenue you cannot keep is not value. Applying gross margin makes lifetime value comparable against acquisition cost, which is always a real cash outflow.
For a rigorous figure, yes - a three-year lifetime discounted at 10% is worth roughly 10% less than the undiscounted sum. This version keeps it simple and slightly optimistic.