What this calculator does
Cost per lead is the average amount spent to generate one lead: a contact who has shown interest, such as by filling in a form or requesting a quote, but has not yet become a paying customer. It sits earlier in the funnel than cost per acquisition.
CPL is most useful alongside the rate at which leads actually convert into customers further down the funnel. A low CPL that produces mostly unqualified leads can end up costing more per customer than a higher CPL that produces leads who are ready to buy.
The formula
Divide total ad spend by the number of leads it generated. The result is the average cost of collecting one lead over that spend.
| Term | Meaning |
|---|---|
| CPL | Cost per lead: total spend ÷ number of leads. |
| Leads | Contacts who took an interest-showing action, such as a form fill, ahead of any purchase. |
| Spend | The total amount spent to generate those leads. |
The inputs explained
| Field | What to enter |
|---|---|
| Total ad spend ($) | The total ad spend over the period being measured. |
| Leads generated | The number of leads that spend generated. |
When to use it
Budgeting a lead-generation campaign
Knowing the CPL a campaign runs at lets you estimate how many leads a given budget should produce, before deciding whether that volume is worth pursuing.
Comparing lead sources
Different channels often produce leads at very different costs and quality, so CPL alongside lead-to-customer conversion rate helps decide where to invest.
Setting a maximum CPL for profitability
Working backwards from CPA and your lead-to-customer conversion rate gives a maximum CPL a campaign can sustain and still be worthwhile.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How CPL changes as spend increases at a fixed number of leads
A fixed 60 leads, at a range of total spend levels.
| Total spend | CPL | Leads per $1,000 spend |
|---|---|---|
| $300 | $5.00 | 200.00 |
| $600 | $10.00 | 100.00 |
| $900 | $15.00 | 66.67 |
| $1,200 | $20.00 | 50.00 |
| $1,800 | $30.00 | 33.33 |
| $2,400 | $40.00 | 25.00 |
How CPL changes as leads increase at a fixed spend
A fixed $900 budget, across a range of lead volumes.
| Leads generated | CPL | Leads per $1,000 spend |
|---|---|---|
| 20 | $45.00 | 22.22 |
| 40 | $22.50 | 44.44 |
| 60 | $15.00 | 66.67 |
| 90 | $10.00 | 100.00 |
| 120 | $7.50 | 133.33 |
| 180 | $5.00 | 200.00 |
Questions
What is a good CPL?
It depends on the value of a customer and the share of leads that go on to buy, both of which vary widely by business. Compare CPL against your own lead-to-customer conversion rate and CPA rather than a generic figure.
How is CPL different from CPA?
CPL measures the cost of an earlier-stage lead, such as a form submission; CPA usually measures the cost of a completed sale or paying customer, which is further along the same funnel.
Can a low CPL be a bad sign?
Yes, if it comes from loosening the definition of a lead or targeting a broad, low-intent audience. A cheap lead that rarely converts to a customer can cost more overall than a pricier, better-qualified one.
How do I turn CPL into CPA?
Divide CPL by your lead-to-customer conversion rate. For example, a $20 CPL with a 25% lead-to-customer rate implies roughly an $80 CPA, since four leads are needed on average to produce one customer.
To see the eventual cost per paying customer rather than per lead, use the CPA calculator. For the share of clicks or visitors that became leads in the first place, see the conversion rate calculator.