Lead value calculator
This calculator needs JavaScript. The formula and the worked example on this page show how it works.
Optional. Add it to see profit per lead instead of revenue per lead.
Result
Enter a value above 0 in each field.
Formula
Revenue value of a lead = average revenue per customer x close rateClose rateThe share of leads worked that become closed deals, such as sold jobs or signed cases. Glossary
Profit value of a lead = revenue value of a lead x profit margin
What is the value of a lead?
Most leads do not become customers. The value of a lead spreads the revenue from the leads that do close across every lead you worked. If one in ten leads becomes a customer, each lead is worth one tenth of the revenue from a customer.
There are two ways to state it. The revenue value of a lead uses revenue only. The profit value of a lead also multiplies by your profit margin, so it shows what each lead adds after the cost of delivering the work. The profit value is the better figure to compare with your cost per lead, because you pay for leads out of profit, not revenue.
This page is for businesses that buy leads, such as law firms, contractors and insurance agencies. If you sell leads and want to know what buyers pay for them, see the "what they are worth" guides under Sell your leads, for example what car accident leads are worth and what roofing leads are worth.
Example (made-up numbers)
Average revenue per customer of $1,000 and a 10% close rate: $1,000 x 10% = $100.00 revenue value of a lead.
Add a 50% profit margin: $100.00 x 50% = $50.00 profit value of a lead.
How to use the lead value calculator
- Enter your average revenue per customer. Use the total a customer pays you over the work you do for them, not a single invoice if they usually buy more than once.
- Enter your close rate as a percentage: customers won divided by leads worked. If you do not know it, the close rate calculator works it out from your counts.
- Optionally enter your profit margin to see the profit value of a lead.
- Read the result as you type. Use Copy result to paste it into a report, or Clear inputs to start again.
Take the revenue and the close rate from the same lead source and the same period. A close rate from referrals combined with revenue from paid leads gives a lead valueLead valueWhat a lead is worth to the business that works it. Glossary that does not describe either source.
How to read the result
Compare the profit value of a lead with what you pay for each lead. If you pay less than the profit value, each lead adds profit on average. If you pay more, each lead costs you money on average, even when some leads close for large amounts.
To include returned leads in that comparison, use the lead cost calculator, which works out the effective cost per delivered lead. To turn your margin and close rate into a price ceiling, with an optional profit target, use the break-even cost per lead calculator.
Lead value moves with close rate. A team that follows up faster or qualifies better raises the value of the same leads without any change to the source, so recalculate after a change in your sales process.
Common lead value mistakes
- Using the largest deal instead of the average. One large customer makes leads look more valuable than they are. Use the average across all customers from the source.
- Using a close rate from a different source. Close rates differ between referrals, organic inquiries and purchased leads. Use the rate for the leads you are pricing.
- Stopping at revenue. The revenue value of a lead is always higher than the profit value. Pricing leads against revenue can make an unprofitable source look profitable.
- Ignoring repeat business. If customers buy again, a single sale understates their value. The customer lifetime value calculator gives a fuller revenue figure to enter here.
Embed this calculator
You can add this lead value calculator to your own site. Copy the code below and paste it into your page. It loads the calculator in a frame and includes a credit link to this page.
Frequently asked questions
What is the value of a lead?
It is the average amount one lead is worth to your business: average revenue per customer multiplied by close rate. Multiply by your profit margin as well to get the profit value of a lead.
How do you calculate the value of a lead?
Multiply the average revenue per customer by the share of leads that become customers. For profit value, multiply the result by your profit margin. The calculator above does both steps as you type.
Should I compare lead value with my cost per lead?
Yes. Compare the profit value of a lead with your effective cost per lead after returns. If the cost is lower, the source adds profit on average.
Is the value of a lead the same for every source?
No. Close rates and average revenue differ between sources, so calculate a separate lead value for each source you buy from or generate.
Related tools
Know what a lead is worth to you?
Summit Leads delivers exclusive MVA and home improvement leads in all U.S. states, with shared delivery on request. Email us the verticals, states and volume you want.
Or write to team@summitleads.ai. We reply by email.
What happens next
- Step 1: You email us.
- Step 2: We reply by email.
- Step 3: Return terms are agreed on the onboarding call, before you go live.