Leads calculator
This calculator needs JavaScript. The formula and the worked example on this page show how it works.
Result
Enter a value above 0 in each field.
Formula
New clients needed = revenue goal / average value per client, rounded up
Leads needed = new clients needed / close rateClose rateThe share of leads worked that become closed deals, such as sold jobs or signed cases. Glossary, rounded up
Lead budget = leads needed x cost per lead
How many leads do I need?
Start from the result you want and work backward through your funnel. A revenue goal becomes a number of new clients once you divide it by what an average client is worth. That number of clients becomes a number of leads once you divide it by your close rate, because only some leads become clients.
If you already think in clients rather than revenue, skip the first step: the second mode starts from the number of new clients you want each month. In both modes the calculator rounds clients and leads up to whole numbers, because you cannot buy part of a lead.
The same steps apply whether you run a law firm, a contracting business or an insurance agency. Only your own figures change, so the calculator has no preset numbers for any type of business.
Example (made-up numbers)
A $10,000 monthly revenue goal and $1,000 average value per client: $10,000 / $1,000 = 10 new clients.
10 new clients at a 10% close rate: 10 / 10% = 100 leads per month.
100 leads at $10 per lead: 100 x $10 = $1,000.00 monthly lead budget.
How to use the leads calculator
- Pick From a revenue goal or From a new-client goal.
- Enter your goal for one month, your average value per client (revenue goal mode only), your close rate and your cost per lead.
- Read the leads needed, the new clients needed and the monthly lead budget as you type.
- Use Copy result to paste the figures into a plan, or Clear inputs to start again.
Use your own close rate for the lead source you plan to buy from. If you do not have one yet, the close rate calculator works it out from closed deals and leads worked. If you buy leads with a returnReturnA buyer's request for credit on a lead that fails agreed standards, such as a disconnected number, a duplicate or a lead outside the filters. Glossary policy, enter the effective cost per delivered lead from the lead cost calculator as your cost per lead.
How to read the result
The leads figure is the volume you need to buy or generate each month to reach the goal at your current close rate. The budget figure is what that volume costs. Read them together: if the budget is more than you can spend, either the goal, the close rate or the cost per lead has to change.
Check the budget against what the leads earn. The lead budget should be lower than the profit from the clients it produces. The break-even cost per lead calculator shows the most you can pay per lead, and the lead value calculator shows what each lead is worth.
Remember the time lag. Leads bought this month may close next month, so the clients from a month of leads can arrive over a longer period than the leads did.
Common mistakes when planning lead volume
- Using a hoped-for close rate. Plan with the close rate you have measured. A higher rate in the plan than in practice leaves you short of clients.
- Ignoring team capacity. More leads only help if someone can call them quickly. Check that your team can work the leads the calculator shows.
- Leaving returns out of the cost. A cost per lead before return credits overstates the budget. A cost after credits that you have not agreed with the seller understates it.
- Planning one month at a time. A lead budget that changes sharply each month makes close rates harder to compare. Hold the plan steady long enough to measure it.
Embed this calculator
You can add this leads 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
How many leads do I need?
Divide the new clients you want by your close rate. If you start from revenue, first divide the revenue goal by the average value per client. The calculator above rounds both results up to whole numbers.
How do I set a lead budget?
Multiply the leads you need each month by your cost per lead. Then check that the budget is lower than the profit those leads produce, using your own close rate and client value.
Why does the calculator round up?
You cannot sign part of a client or buy part of a lead. Rounding up means the plan reaches the goal instead of falling just short of it.
Can I use this as a marketing budget calculator?
Yes, for the lead part of a marketing budget. It covers what you spend on leads. Add other costs such as staff time and software separately.
Related tools
Know how many leads you need?
Summit Leads delivers exclusive MVA and home improvement leads in all U.S. states, with shared delivery on request. Email us your states, filters and monthly volume.
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.