Free tool
Lead value calculator
Two types of leads, each with its own cost and value. Pick the stage where you judge them, the qualified lead or the signed customer: the tool shows which one leaves you the most margin for every euro you spend, even when it brings you fewer forms.
The value of a lead is what it brings on average: the value of the next stage, a qualified lead or the margin of a signed customer, multiplied by the share of leads who reach it. Take away what the lead cost to get its net gain. Divided by its cost, it tells you how much each euro of advertising gives back.
Lead A
Most profitableA campaign, an audience or a type of request: whatever you want to compare.
Lead B
Most profitableNet gain on your budget, lead A against lead B
How lead value is calculated
Value per lead = Value at the stage × Share of leads who reach it Net gain per lead = Value per lead − Cost per lead Cost at the stage = Cost per lead ÷ Share of leads who reach it Margin per 1 € spent = Value per lead ÷ Cost per lead Net gain on your budget = Budget × Margin per 1 € spent − Budget
With the starting numbers, a 1,000 € budget, at the qualified lead stage. Lead A costs 40 €, 20 % are qualified and a qualified lead is worth 800 €: 25 leads, 5 qualified leads, 3,000 € of net gain. Lead B costs 100 €, 50 % are qualified and a qualified lead is worth 1,400 €: 10 leads, 5 qualified leads as well, and 6,000 € of net gain. Two and a half times fewer forms, twice the gain. Switch to the signed customer: with 40 % of qualified leads signing on both sides, the verdict stays the same, 2 customers each and still 3,000 € against 6,000 €.
A shop owner judges the day by what is left in the cash register at night, much more than by how many people walked in. A form is someone walking in. My recommendation is to judge a lead generation campaign on the margin each euro spent leaves you, and to read the number of leads as a consequence.
Two stages, two uses. The qualified lead measures what advertising brings: requests your team rates as good. The signed customer adds what happens next, your meeting and your quote. With my clients, I judge my campaigns on the qualified lead: it is where advertising’s job ends.
The number of leads your budget buys can also change the verdict. Take two customers: one leaves 1,000 € of margin and costs 50 € to win, the other leaves 2,000 € and costs 60 €. The second wins on both counts: 1,940 € of gain per customer against 950 €, and 33 € of margin for each euro spent against 20 €. Now bring the first one’s cost down to 10 €: each euro spent brings it 100 €, three times more than the second, while each customer still brings less. With a fixed budget, the first one wins, as long as demand follows.
What makes the calculation reliable
- The shares of qualified and signed leads come from your tracking. Record the status of each lead (qualified, signed, lost) and the amount signed: that sheet gives the numbers the whole calculation depends on.
- Start from margin. A project signed at 10,000 € that costs 7,000 € to deliver leaves 3,000 €. For a customer who comes back, take the margin over the whole relationship: the customer lifetime value calculator gives it to you.
- A stable cost per lead. The calculation assumes the next lead costs the same as the previous ones. Before moving budget toward one type of lead, check what the Google Ads bid and budget simulators forecast at that new spend level.
Frequently asked questions
What is a qualified lead?
A contact who matches what you sell: they have the need, the budget and the timing your offer serves. A filled-in form is a request; it becomes a qualified lead once someone on your side has checked it can turn into a customer.
How do you calculate lead value?
Multiply the margin one customer leaves by the share of leads who sign. If a customer leaves 3,500 € and 20 % of leads sign, one lead is worth 700 € of margin. Take away what it cost you to get its net gain: 700 − 100 = 600 €.
How do you improve lead quality?
By telling Google Ads which leads signed. Offline conversion import sends it the outcome of each lead: bidding then learns from your signed customers instead of filled-in forms.
Which leads leave you the most margin?
I connect your campaigns to what your leads become, so bidding goes after the ones who sign.
Attract Profitable Leads
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Théo MaupiléFreelance Paid Media
Google PartnerSuperMalter
