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Lead Value

Free Lead Value calculator with clear step-by-step results.

About Lead Value

Values a single lead by working from close rate, sale value and margin, then adds repeat purchases and subtracts the cost of actually working the lead. The result is the break-even bid for a lead, which is the number to take into any paid channel or lead-purchase negotiation.

Formulas

Gross profit per lead

Profit = close rate x average sale x gross margin x repeat multiplier

Net value

Net = gross profit per lead - sales handling cost per lead

Worked example

With the default values below, Lead Value returns Net value of one lead of $26.30. Change any input above and every figure here is recalculated in your browser.

Inputs used

Lead to sale close rateaccepts 0–100 %
4 %
Average sale valueminimum 0 $
1,800 $
Gross margin on the saleaccepts 0–100 %
38 %
Repeat purchase multiplieraccepts 1–10 x
1.4 x
Sales handling cost per leadminimum 0 $
12 $

Results

Net value of one lead
$26.30
Gross profit per lead
$38.30
Revenue per lead
$100.80
Most you can pay for a lead
$26.30

Step by step

  1. 1Values used
  2. 2Gross profit per lead
  3. 3Net value
  4. 4Net value of one lead= $26.30
  5. 5Gross profit per lead= $38.30
  6. 6Revenue per lead= $100.80
  7. 7Most you can pay for a lead= $26.30

Assumptions and limits

  • The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why subtract sales handling cost?

Every lead consumes time whether or not it closes. On low close rates that cost is material - a 4% close rate means twenty-five leads are handled for each sale.

Should I pay right up to the maximum?

No. That is break-even. Paying 50-70% of it leaves a margin for forecast error and for the lead quality being worse than assumed.

Related Calculators

Lead Value – Calculate Net value of one lead | Calcrivo