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Lead Cost Calculator

Follow the numbers from a raw inquiry to a booked job. Understand break even lead cost before choosing a campaign budget.

Start with the economics of a booked job. Every loaded value is an illustration. Use rates from the same time period and the same definition of an inquiry.

Follow an inquiry to a job.

THE ACQUISITION ALLOWANCE

What could an inquiry cost?

Cost per raw inquiry at your chosen reserve$237.00

An allowance from your assumptions, not a market price or a suggested bid.

Contribution before acquisition per job
$2,400.00
Raw inquiry to booked job rate
15.00%
Break even raw inquiry cost
$345.00
Acquisition cost per qualified inquiry
$300.00
Acquisition and handling per booked job
$1,300.00
Review a campaign scope

IF THE ENTERED RATES HOLD

One budget. Each stage visible.

Raw inquiries

20

Qualified inquiries

12

Booked jobs

3

Expected contribution after the entered acquisition and handling costs: $3,300.00. Fractional counts represent a scenario average. Real campaigns can produce fewer, more or no inquiries, and costs may be missing from this simplified model.

Definitions, formulas and limits

Raw inquiry to booked job probability equals the qualification rate multiplied by the close rate among qualified inquiries. Break even acquisition cost per raw inquiry equals job contribution multiplied by that probability, minus handling cost per raw inquiry. The reserve adjusted allowance first removes the selected share of contribution.

For example, 60% qualification and 25% close among qualified inquiries produce a 15% raw inquiry to booked job rate. These rates are conditional, not independent percentages to add together. Positive allowances round down to a cent. Acquisition budget divided by the entered acquisition cost per raw inquiry gives the modeled inquiry count. A zero acquisition cost or zero conversion denominator produces not defined results.

The tool does not retrieve keyword prices, lifetime value, attribution data or tax rates. Organic lead generation also has costs. Include a consistent allocation if you use this calculator to compare an organic channel with paid advertising.

Your financial assumptions stay in this browser tab. The project inquiry link shares the topic, not these amounts.

TAKE THE RESULT FURTHER

Turn assumptions into a measurable campaign.

Define the inquiry, the qualification rules and the result you can observe. Consistent campaign links help keep that review organized.

A PRACTICAL FIELD GUIDE

Find a lead cost your job economics can support

This free lead cost calculator follows the path from raw inquiry to qualified opportunity to booked job. Enter contribution per job, qualification and close rates, handling cost and the contribution share you want to retain. The output gives an acquisition allowance and budget scenario. Use consistent definitions when comparing paid advertising with organic lead generation. The tool does not retrieve market prices or forecast campaign volume.

Evaluate a lead price

Compare the acquisition cost per raw inquiry with what your contribution and conversion assumptions can support. A quoted price for an exclusive lead still needs a clear definition of qualified, the handling process and a sensible comparison with booked work.

Explain campaign performance beyond volume

Keep raw inquiries, qualified inquiries and booked jobs visible. More form submissions can coexist with weak economics. A shared set of definitions helps the marketing and sales teams discuss where people stop progressing and interpret the headline lead count.

Compare paid and organic acquisition

Organic inquiries can carry content, website, tracking and maintenance costs even when there is no cost for the click. Choose a consistent acquisition cost definition when comparing channels. Keep the time period and qualification criteria comparable.

How to use it

  1. 01

    Define contribution per booked job

    Enter average revenue and the fulfillment cost you want the model to cover. Their difference is the contribution available before the modeled acquisition and handling costs. Include relevant costs consistently; the tool cannot detect what you left out.

  2. 02

    Use the correct rate denominators

    Enter the share of raw inquiries that qualify, then the share of qualified inquiries that become booked jobs. Do not enter an overall close rate in the qualified close rate field. Multiplying the two conditional rates gives the raw inquiry to booked job rate.

  3. 03

    Account for handling and a reserve

    Enter the average handling cost for each raw inquiry, including inquiries that do not qualify. Choose the percentage of job contribution you want retained. This reserve is your planning choice, not an industry standard or a promised profit margin.

  4. 04

    Compare the allowance with your cost

    Read both the break even acquisition allowance and the reserve adjusted allowance. Then enter a cost per raw inquiry and budget for the scenario. The cost per qualified inquiry uses acquisition cost; the cost per booked job also includes handling.

  5. 05

    Export and test the assumptions

    Download the assumptions as CSV and compare them with records from the same period. Change one assumption to see its effect. Before changing campaign spending, check lead definitions, attribution, follow up and whether the sample is large enough to be informative.

FROM INPUT TO DECISION

Worked example: the loaded lead scenario

Illustrative inputs: $8,000 revenue, $5,600 fulfillment cost, 60% qualification, 25% close among qualified inquiries, $15 handling, 30% contribution reserve, $180 acquisition cost per raw inquiry and a $3,600 budget.

CalculationResultInterpretation
Contribution and booked rate
$2,400; 15%
60% × 25% = 15% of raw inquiries
Raw inquiry acquisition allowances
$345 break even; $237 with reserve
Handling is deducted in both allowances
Cost at the entered $180 raw inquiry price
$300 per qualified; $1,300 per booked job
The booked job amount includes handling
Budget scenario
20 raw; 12 qualified; 3 booked
Counts follow the entered assumptions
Contribution after modeled costs
$3,300
3 × $2,400, less $3,600 acquisition and $300 handling

The $237 allowance follows the chosen reserve: $2,400 × 70% × 15%, less $15 handling. It is not a quoted market price, suggested ad bid or prediction that those conversion rates will hold.

Check quality before celebrating a low cost

Cheap raw inquiries can still produce expensive booked jobs. Inspect landing page questions, actual service fit and response handling. Use customer records to understand where the process weakens.

Keep exclusivity separate from conversion

Exclusive routing describes who receives an inquiry, not whether that person qualifies or buys. Review offer terms and qualification outcomes without assigning exclusivity a guaranteed conversion benefit.

Questions & limits

This is deterministic scenario arithmetic. It does not retrieve ad prices, keyword demand, customer lifetime value or attribution data. Missing costs remain outside the result.

Fractional counts represent scenario averages. Real campaigns may produce fewer, more or no inquiries. Zero acquisition cost or a zero conversion denominator makes the affected ratios undefined.

What is a raw inquiry?

It is the initial contact before qualification. Decide how duplicates, spam and existing customers are handled. A raw inquiry and a qualified lead are different comparison units.

Why does the reserve use a percentage?

It retains the selected share of contribution, not revenue. The example retains 30% of $2,400 before applying the booked job rate and deducting handling cost.

Does the calculator recommend a Google Ads budget?

No. Budget divided by assumed inquiry cost is scenario arithmetic. It does not show demand or auction prices. Use measured results and a defined campaign scope.

What does no positive allowance mean?

The assumptions cannot cover handling and the reserve while leaving a positive acquisition allowance. Check costs and rate definitions before deciding how to respond.

Put better definitions behind your lead strategy

Bring your lead definitions, sales stages and acquisition records. Trojan can help connect paid media or owned organic lead generation to a clearer measurement and inquiry process.

Review your lead strategy

Take the result further