Lead Value Calculator
What one lead is worth in gross profit — and the most you should ever pay for one.
Your numbers
Your result
- Revenue per lead
- $576.00
- Gross profit per lead (first job)
- $241.92
- Lifetime gross profit per lead
- $532.22
- Maximum you should pay per leadAt 25% of lifetime gross profit.
- $133.06
- Profit per lead at your current cost
- $447.22
- Monthly profit from lead flow
- $53,667
- Max cost per lead if close rate rose 10 pointsBetter closing raises what you can afford to pay — and outbid competitors for.
- $174.64
A lead is worth $532 — you're paying $85
You have room to spend up to $133 per lead. Most owners refuse to raise their cost per lead while their competitors quietly buy the same leads at a higher price — knowing this number is how you win that fight.
Everything runs in your browser. Nothing you type is saved, stored or sent anywhere.
What this number actually tells you
Every lead has a dollar value, and it's simple arithmetic: what you close times what a job is worth times your margin. Once you know it, cost per lead stops being an emotional argument and becomes a limit.
This is also where lead handling gets expensive. If a lead is worth $240 in gross profit, every unanswered call is a $240 mistake. Most businesses lose more money in the fifteen minutes after a lead arrives than they do in their entire ad account.
The strategic point: the business with the best close rate can pay the most per lead, and therefore buys the most leads. Closing ability is a marketing advantage, not just a sales one.
How the math works
- 01Revenue per lead = average job value × close rate %.
- 02Gross profit per lead = revenue per lead × gross margin %.
- 03Lifetime gross profit per lead = gross profit per lead × lifetime revenue multiple.
- 04Max cost per lead = lifetime gross profit per lead × the share of gross profit you'll allocate to acquisition (commonly 20–30%).
- 05Profit per lead = lifetime gross profit per lead − current cost per lead.
What to do with the answer
- Post the lead value where your phone gets answered. It changes behavior faster than any script.
- Use max cost per lead as your ceiling for every channel, then compare channels against it.
- Track close rate by lead source. Sources with different close rates have wildly different true values.
- Recalculate after any price increase — a higher average ticket immediately raises what you can afford to pay per lead.
Want someone to read these numbers with you?
The Growth Assessment is a 30-minute conversation about what your numbers are telling you and what to fix first. No pitch deck, no PDF.
Schedule Your Growth Assessment Or call (737) 888-0415Questions owners ask about this
How do I calculate what a lead is worth?
Multiply average job value by your close rate to get revenue per lead, then multiply by gross margin. If your average job is $1,800, you close 32%, and your margin is 42%, each lead is worth about $242 in gross profit.
How much should I pay per lead?
Typically 20–30% of the lifetime gross profit a lead produces. That leaves room for overhead and profit while remaining competitive. If your leads are worth $530 in lifetime gross profit, paying $100–$150 each is defensible.
Why do unanswered leads matter so much?
Because you've already paid for them. A missed call is the full lead value thrown away, plus the acquisition cost already spent. Speed to lead is the cheapest performance improvement available to most small businesses.
Use these next
Marketing & Sales
Missed Lead Revenue Calculator
What unanswered calls, slow callbacks and dead follow-up cost you every year.
Marketing & Sales
Required Leads Calculator
How many leads your revenue goal actually requires — and what that costs.
Marketing & Sales
CAC Calculator
What a customer costs you across marketing, sales and fees — and your payback period.
Marketing & Sales
Conversion Rate Calculator
Stage-by-stage funnel conversion, plus what a few points are worth in dollars.