Use this simple calculator to calculate what is the maximum amount that you should be spending to acquire a lead.

Maximum Cost Per Lead Calculator

Enter The Value Of Each Client

($)

How much revenue can you expect to earn per client? You can base this number in terms of how much you can expect to receive within the same year, or you can calculate how much revenue you can expect to receive in the customer’s lifetime. This is also known as lifetime value. Using the lifetime value allows you to accurately know what is your maximum cost per lead you should be paying.

Marketing Budget Allocated to Acquiring Customer

(%)

How much of your revenue are you willing to spend to acquire a customer. If a customer is worth $1000, would you be willing to spend $350 to acquire the customer? If yes, then your marketing budget allocated is 35%. Most companies typically allocate around 30% to 40%

Conversion Rate

(%)

Out of every 100 leads received, how many are you able to convert into a paying customer? If the answer is 5, then your conversion rate is 5%