Free calculator
Target Cost Per Lead Calculator
Start with what a customer is worth to your business and how often qualified enquiries turn into sales. Work backwards to the media cost you can afford per qualified lead.
Calculate your cost ceiling
Use a realistic target and a close rate based on qualified leads. The example values are assumptions, not benchmarks.
The formula
Total cost allowed per qualified lead = customer acquisition cost target × qualified-lead close rate.
Media cost ceiling per qualified lead = total cost allowed per qualified lead − other acquisition costs ÷ qualified leads in the same period.
For a $120 acquisition target and a 20% close rate, the total allowance is $24 per qualified lead. If you plan around 50 qualified leads and $350 of other costs, those costs use $7 per lead. That leaves $17 per qualified lead for media, or $850 for the scenario.
The figures are hypothetical. The tool does not estimate whether Meta can deliver leads at that price or whether your business will close them at the assumed rate.
Use the right close rate
Divide customers won by qualified leads from the same cohort, after allowing enough time for sales to close. If you use a rate from qualified leads, enter qualified leads in the volume field too. Mixing all form submissions with a qualified-lead close rate makes the calculation misleading.
If you lack enough history, calculate several scenarios. At a $120 acquisition target, a 10% close rate allows $12 in total costs per qualified lead; a 20% rate allows $24. That difference can change whether a plan is affordable.
For a small sample, treat the rate as uncertain. Read how to compare enquiries and qualified leads before using a campaign report as the source.
Account for the full cost
Include the management fee, creative and other acquisition costs that your target is supposed to cover. If using Mark from month two, include its 3% spend-based fee in those costs as well. Estimate it with the budget calculator and revise the scenario if spend changes.
The target should be an amount your business can afford, based on contribution margin and cash needs. The calculator does not derive a profitable target from revenue. If other costs use all of the allowance, it shows that there is no room left for media in that scenario.
Use the result to ask a better question
“Can we test this offer within this ceiling?” is more useful than “Can we get cheap leads?” Bring your assumptions to the first conversation, including how you define qualification and who handles follow-up.
Mark reports the conversions agreed before launch. Your sales records are needed to establish which enquiries became qualified leads and customers. See the service scope before deciding what to delegate.