CPL Calculator

CPL (Cost per Lead) – it is an important marketing metric that indicates how much each attracted lead costs the company. If you do not know how to calculate the cost of a lead in a target or context, then use a convenient and straightforward online CPL calculator from eSputnik. You no longer need to carry out calculations manually, a couple of seconds - and the result is before your eyes. We will tell you how to use the calculator and why you need these calculations.

CPL calculator: online calculation in a couple of seconds

To use our Lead Cost Calculator, you only need to know two quantities: the amount of your marketing budget spent and the number of leads that you have been able to attract with the help of marketing and advertising. Enter the indicated data in the calculator's corresponding fields, and you will immediately get the finished result.

Lead price: how to calculate manually

Without an online CPL calculator, you will have to calculate the cost of a lead using a special formula:

Now you know how to count leads. The formula and its practical application will be much clearer if you give an illustrative example.

Let's say your marketing budget for the month is $ 2,000. For this money, you managed to get 150 leads. The cost of one lead will be equal to:

CPL = 2000 / 150 = 13,3 $.

However, here it should be borne in mind that a lead is not a client yet, but just a user who is interested in your USP or offer, who has left his contacts in various forms. To buy the proposed product, the sales department will have to work (auto sales, when the user does not actually contact sales managers, are typical mainly for product aggregators and online stores).

Please note that of all the leads received, only a part will become your customers. For each business and company, the percentage of conversions to sale is different. Therefore, it is important to calculate how much a real customer is costing you when assessing the CPL indicator.

What is the CPL calculation for

CPL calculation in marketing is needed first of all in order to:

• estimate how much a real customer is costing you, taking into account the size of the conversions to the sale;
• understand whether it is necessary to optimize an advertising campaign, revise lead generation channels and marketing budget;
• analyze which advertising will help increase profits and how much you need to spend on it;
• see if the price of the product matches the financial costs that the company incurs in attracting leads and customers.

Where to get data for calculating CPL

All data for calculating the cost of a lead using a formula or calculator can be found in the analytics systems Google Analytics and Yandex.Metrica, as well as in the CRM system if you use it to automate business processes.

How to evaluate the CPL result

CPL is a pricing model for paying for advertising for each lead you refer. This is one of the important marketing metrics used to measure the effectiveness and profitability of advertising campaigns. Knowing the cost of a lead, you can calculate the price that a business pays for each real customer.

For example, based on the cost of your product, you can spend no more than $ 50 on attracting one customer. Anything above this mark will already be unprofitable for you. After calculating the CPL formula, you found out that the cost of one lead for the conducted advertising campaign was $ 13.3 (see example above). At the same time, the conversion to sale was 25%, that is, every fourth lead became your client.

According to the method of calculating the percentage, we get that one new client cost the company $ 53.2 (this indicator in marketing is referred to as CPO - the cost of an order). The result does not correspond to her financial capabilities and the expectations of marketers. The allowed CPL size at the specified marginal cost of attracting a client and this level of conversions to sales will be $ 12.5. It becomes clear that the advertising campaign given in the example was not effective enough, because more was spent on attracting one lead than budgeted.

To optimize it, you will need to either reduce the CPL or increase the conversion to sale so that one real client is cheaper for the company. If the leads for advertising come targeted and high-quality. In that case, you will increase the conversion by modifying the sales scripts and thinking about additional benefits for customers. If sales managers complain about low-quality lead generation, you should reconsider the advertising channels, offer placed in creatives, targeting settings, and keywords in context.

When considering the profitability of your business, be sure to consider how much money you are spending to find new leads and customers. This will help you develop the right pricing policy and get rid of ineffective advertising and other marketing actions in time.