Lead Cost Calculator
Your cost per lead is just the starting point. This calculator shows your true cost per acquisition — factoring in contact rate, close rate, and deal value. Find your break-even point and see your real ROI.
Understanding Your Numbers
Most sales professionals focus on cost per lead (CPL) when evaluating their lead sources. But CPL is misleading — a $0.50 lead that never picks up the phone is more expensive than a $3 lead that answers and converts. The metric that actually determines your profitability is cost per acquisition (CPA).
CPA accounts for the entire journey from lead to sale: how many leads you buy, how many you actually reach, and how many of those conversations turn into deals. It's the number you should track weekly and optimize against — not the price you pay per record.
The break-even close rate is especially useful. It tells you the minimum you need to close to cover your lead costs. If your break-even is 1.5% and you're consistently closing at 3%, you have a sustainable, profitable system that you can scale with confidence.
Industry Benchmarks
| Industry | Typical Contact Rate | Typical Close Rate | Target CPA |
|---|---|---|---|
| Insurance | 10-15% | 15-25% | $50-$150 |
| Final Expense | 12-18% | 20-30% | $30-$80 |
| Mortgage | 8-12% | 10-20% | $200-$500 |
| Solar | 10-15% | 8-15% | $150-$400 |
| Medicare | 12-18% | 15-25% | $40-$100 |
| SSDI | 12-18% | 40-55% | $30-$60 |
Track Your Numbers
Weekly tips on measuring and improving your lead conversion economics.
FAQ
What is cost per acquisition (CPA)?
Cost per acquisition is the total amount you spend on leads to acquire one paying customer. It's calculated by dividing your total lead spend by the number of closed deals. CPA is a more accurate profitability metric than cost per lead because it accounts for your conversion rate.
What's a good CPA for aged leads?
A good CPA varies by industry. For insurance agents, $50-$150 per policy is strong. For mortgage brokers, $200-$500 per closed loan is typical. For final expense agents, $30-$80 per policy. The key is that your CPA is significantly lower than your revenue per sale.
What is a break-even close rate?
Your break-even close rate is the minimum percentage of contacted leads you need to close in order to cover your lead costs. If your break-even rate is 1% and you're closing at 3%, you have healthy margins. If you're below break-even, adjust your scripts or lead quality.
How do I improve my cost per acquisition?
Three levers: improve your contact rate (call at better times, use multi-channel outreach), improve your close rate (better scripts, faster follow-up), or reduce your cost per lead (buy older leads, negotiate volume discounts). Even small improvements compound significantly at scale.
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