Free tool

Cost per lead & ROI calculator

See exactly what paid leads are worth to your business. Enter your lead price, conversion rate and average sale value to get your cost per customer, return on lead spend and the conversion rate you need to break even.

Your numbers
$
%
$
%

Set margin to 100% to see return on revenue; lower it to your gross margin for a true profit ROI.

Your return
Cost per customer
$333
Return on lead spend
4.50×
Monthly profit after lead cost
$17,500
Customers / month
15
Revenue / month
$22,500
Lead spend / month
$5,000
Break-even conversion
3.3%

At a 15% conversion you earn $4.50 back for every $1 spent on leads. You only need to convert 3.3% of leads to break even.

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Exclusive, SMS-verified leads. No retainers, no lock-in — pay only for leads that fit your brief.

Last updated 9 July 2026 · Estimates only — your real numbers depend on your offer, follow-up and market.

Key takeaways
  • What matters isn't the price of a lead — it's your cost per customer (lead price ÷ conversion rate) versus your sale value and margin.
  • ROI = (revenue × margin − lead spend) ÷ lead spend. ROAS tells you the dollars back per $1 spent.
  • Your break-even conversion = lead price ÷ (sale value × margin). Beat it and every extra lead is profit.
  • Exclusive, fast-followed leads convert higher than shared ones — which changes the whole equation.

How to read your cost per lead

A lead price on its own means nothing. A $100 lead is a bargain if you convert one in three and each sale is worth $3,000; the same $100 lead is a disaster if you convert one in fifty. The number that actually governs your profit is cost per customer — your lead price divided by the share of leads you turn into paying customers. Compare that to your average sale value (times your margin) and you know immediately whether the channel makes money.

Why conversion — and speed — decide the outcome

Because cost per customer is so sensitive to conversion, small improvements in how you handle leads move the ROI a lot. The single biggest lever is speed-to-lead: research popularised by Harvard Business Review found that contacting a web lead within five minutes dramatically raises the odds of qualifying it versus waiting even half an hour. Exclusive leads help for the same reason: when a lead isn't also sold to three competitors, more of your calls connect and convert.

Exclusive vs shared leads

Shared leads look cheaper per unit, but they're sold to several businesses at once, so your conversion rate — and therefore your true cost per customer — is worse than the sticker price suggests. Try it in the calculator: drop the conversion rate to model a shared lead, and watch the cost per customer climb. That gap is why exclusive leads usually win on ROI even at a higher price, and it's the model PrimeLeads is built on.

Cost per lead & ROI: FAQs

What is a good cost per lead?

There's no universal number — a $150 lead is cheap for a mortgage broker and expensive for a $200 job. What matters is your cost per customer (cost per lead divided by your conversion rate) measured against your average sale value and margin. This calculator works that out for you.

How do I calculate ROI on paid leads?

Lead ROI = (revenue × your profit margin − lead spend) ÷ lead spend, shown as a percentage. A simpler version is ROAS (return on ad spend) = revenue ÷ lead spend, e.g. '4× back for every $1 spent'. The calculator shows both, plus the conversion rate you need just to break even.

What lead-to-customer conversion rate should I expect?

It varies widely by industry, offer and — critically — how fast you follow up. Speed-to-lead is decisive: research popularised by Harvard Business Review found contacting a lead within five minutes makes you far more likely to qualify it. Exclusive, verified leads also convert higher than shared leads because you're not racing several other businesses.

Are exclusive leads worth more than shared leads?

Usually, yes. A shared lead is sold to several businesses at once, so your conversion rate drops and your effective cost per customer rises. When you plug a higher conversion rate into the calculator, the ROI difference between exclusive and shared leads becomes obvious.

Why pay per lead instead of a monthly retainer?

With pay-per-lead you only spend when a qualified enquiry that matches your brief actually arrives — there's no retainer and no lock-in, so the ROI is transparent and easy to model. That's how PrimeLeads works: exclusive, SMS-verified leads, priced per lead.

See the numbers on real leads

Request a test batch of exclusive, SMS-verified leads and check the ROI for yourself. No retainers, no lock-in.

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