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Free tool · Performance marketing

Cost-per-lead calculator: what can you afford to pay?

Find your break-even and target cost per lead from your sale value, margin and close rate, and check your current one.

Your numbers

Results are estimates to guide decisions, not financial advice. Your numbers stay in your browser.

Cheap leads are not the goal

A ₹300 lead that never buys costs more than a ₹3,000 lead that does. The right cost per lead depends on what a customer is worth to you and how many leads you close.

Gross profit per customer = sale value × margin
Break-even CPL = gross profit per customer × close rate
Target CPL = break-even CPL × share for marketing

Reading your result

  • Below target: healthy. You can likely spend more to grow.
  • Between target and break-even: profitable but thin. Improve close rate or lead quality before scaling.
  • Above break-even: each sale loses money on the first purchase.

Questions

Why compare with my own numbers, not an industry average?

Averages mix very different businesses, cities and sale values. The cost per lead you can afford depends on your own margin and close rate.

What share of profit should go to marketing?

Many businesses aim for 20–40% of first-sale gross profit. If customers buy again, you can afford more.

Should I count all leads or only qualified ones?

Be consistent: if your close rate is based on all enquiries, use the cost per enquiry too.

Is my data saved?

No. The calculation runs in your browser. Nothing is sent unless you choose to email yourself the result.

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“Strategy that survived the boardroom. Execution that survived the calendar.”

Vikram Nair, CEO, Real Estate

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