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Primary formula: maximum cost per lead = close rate ร— bounded customer contribution โˆ’ handling cost โˆ’ target contribution when non-negative

Educational only: Business decision support, not accounting, tax or legal advice.

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Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this calculator helps you decide

Best for

Teams setting a contribution-based cost-per-lead ceiling.

Outputs

Gross and net lead value, current profit, maximum CPL and headroom.

Start here

Use a bounded customer contribution horizon and an observed close rate.

Use a different tool when: Do not use this to measure loaded and marginal customer acquisition cost across aligned channels; use Customer Acquisition Cost Planner for that decision. Use this tool to estimate contribution-based lead value and a sustainable cost-per-lead ceiling.

Cash & growth

Lead Value: gross and net lead value

Gross and net lead value, current profit, maximum CPL and headroom.

Amounts use the same currency as your inputs. No currency conversion is performed.

Decision assumptions

Use one consistent period, contribution and currency basis.

Your numbers stay in this browser

%

Share of qualified leads that become customers.

currency units

Contribution over an explicit bounded customer horizon. Use one consistent currency and indirect-tax basis.

currency units

Qualification and handling cost before acquisition spend. Use one consistent currency and indirect-tax basis.

currency units

Current acquisition cost per lead. Use one consistent currency and indirect-tax basis.

currency units

Contribution to retain after acquisition cost. Use one consistent currency and indirect-tax basis.

Decision result

Every result is produced by the registered customer and marketing engine.

Preparing export actionsโ€ฆ
Gross Lead Value
100.00
Net Lead Value Before Acquisition
90.00
Current Lead Profit
30.00
Maximum cost per lead
70.00
Maximum Cost Per Lead State
Reachable
Target Contribution Shortfall Before Acquisition
0.00
Cost Per Lead Headroom
10.00

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Entered scenario70.00Baseline
Lower Lead close rate60.00Not available
Higher Lead close rate80.00Not available

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Gross Lead Value

Gross Lead Valueclose rate ร— bounded contribution per customer100.00
Result100.00

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Gross Lead ValueClose Rate
0.2
Gross Lead ValueBounded Contribution Per Customer
500
Gross Lead ValueHandling Cost Per Lead
10
Gross Lead ValueCurrent Cost Per Lead
60
Gross Lead ValueTarget Contribution Per Lead
20

Net Lead Value Before Acquisition

Net Lead Value Before Acquisitiongross lead value โˆ’ handling cost per lead90.00
Result90.00

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Net Lead Value Before AcquisitionClose Rate
0.2
Net Lead Value Before AcquisitionBounded Contribution Per Customer
500
Net Lead Value Before AcquisitionHandling Cost Per Lead
10
Net Lead Value Before AcquisitionCurrent Cost Per Lead
60
Net Lead Value Before AcquisitionTarget Contribution Per Lead
20

Current Lead Profit

Current Lead Profitnet lead value โˆ’ current cost per lead30.00
Result30.00

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Current Lead ProfitClose Rate
0.2
Current Lead ProfitBounded Contribution Per Customer
500
Current Lead ProfitHandling Cost Per Lead
10
Current Lead ProfitCurrent Cost Per Lead
60
Current Lead ProfitTarget Contribution Per Lead
20

Maximum cost per lead

Maximum Cost Per Leadnet lead value โˆ’ target contribution per lead when non-negative70.00
Result70.00

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Maximum Cost Per LeadClose Rate
0.2
Maximum Cost Per LeadBounded Contribution Per Customer
500
Maximum Cost Per LeadHandling Cost Per Lead
10
Maximum Cost Per LeadCurrent Cost Per Lead
60
Maximum Cost Per LeadTarget Contribution Per Lead
20

Maximum Cost Per Lead State

Maximum Cost Per Lead Statereachable unless the target is missed before acquisition spendreachable
ResultReachable

Reports state for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Maximum Cost Per Lead StateClose Rate
0.2
Maximum Cost Per Lead StateBounded Contribution Per Customer
500
Maximum Cost Per Lead StateHandling Cost Per Lead
10
Maximum Cost Per Lead StateCurrent Cost Per Lead
60
Maximum Cost Per Lead StateTarget Contribution Per Lead
20

Target Contribution Shortfall Before Acquisition

Target Contribution Shortfall Before Acquisitionmax(0, target contribution โˆ’ net lead value before acquisition)0.00
Result0.00

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Target Contribution Shortfall Before AcquisitionClose Rate
0.2
Target Contribution Shortfall Before AcquisitionBounded Contribution Per Customer
500
Target Contribution Shortfall Before AcquisitionHandling Cost Per Lead
10
Target Contribution Shortfall Before AcquisitionCurrent Cost Per Lead
60
Target Contribution Shortfall Before AcquisitionTarget Contribution Per Lead
20

Cost Per Lead Headroom

Cost Per Lead Headroommaximum cost per lead โˆ’ current cost per lead10.00
Result10.00

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Lead Value Calculator formulas โ†’
Inputs used by these formula steps
Cost Per Lead HeadroomClose Rate
0.2
Cost Per Lead HeadroomBounded Contribution Per Customer
500
Cost Per Lead HeadroomHandling Cost Per Lead
10
Cost Per Lead HeadroomCurrent Cost Per Lead
60
Cost Per Lead HeadroomTarget Contribution Per Lead
20

Inputs used

Close Rate
0.2
Bounded Contribution Per Customer
500
Handling Cost Per Lead
10
Current Cost Per Lead
60
Target Contribution Per Lead
20
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/lead-value/?sv=1&boundedContributionPerCustomer=500&closeRate=0.2&currentCostPerLead=60&handlingCostPerLead=10&targetContributionPerLead=20

ParameterMeaningUnitAllowed valuesPresenceDefault
boundedContributionPerCustomerContribution over an explicit bounded customer horizon. Use one consistent currency and indirect-tax basis.currency units/customer/bounded horizon0 to 10000000Required500
closeRateShare of qualified leads that become customers.decimal share of qualified leads0 to 1Required0.2
currentCostPerLeadCurrent acquisition cost per lead. Use one consistent currency and indirect-tax basis.currency units/qualified lead0 to 10000000Required60
handlingCostPerLeadQualification and handling cost before acquisition spend. Use one consistent currency and indirect-tax basis.currency units/qualified lead0 to 10000000Required10
targetContributionPerLeadContribution to retain after acquisition cost. Use one consistent currency and indirect-tax basis.currency units/qualified lead0 to 10000000Required20

Lead Value: gross and net lead value

Maximum cost per lead protects the target contribution after close probability and lead-handling cost.

Formula summary

Primary formula
maximum cost per lead = close rate ร— bounded customer contribution โˆ’ handling cost โˆ’ target contribution when non-negative

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Set the qualified-lead bid or supplier cap from maximum cost per lead and cost-per-lead headroom.

Stress-test the decision

Retest lead close rate as a percentage of qualified leads and bounded contribution per customer in currency units for the selected horizon.

When this estimate can be misleading

  • Attribution, incrementality, conversion and retention are user-entered assumptions, not causal claims or forecasts.
  • Use one consistent period, currency, contribution and indirect-tax basis.
  • This is educational decision support, not financial, tax, legal or accounting advice.
  • Maximum cost per lead protects the target contribution after close probability and lead-handling cost.

Educational estimate, not advice. See all assumptions & limitations โ†’

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I estimate contribution-based lead value and a sustainable cost-per-lead ceiling?

Set the qualified-lead bid or supplier cap from maximum cost per lead and cost-per-lead headroom.

How should I use the calculated result?

Treat the calculated result as one scenario, then verify the input record with the greatest effect on that result.