Enter the number of leads you received over a period and the number of customers you won from them. The calculator gives your lead-to-customer conversion rate to two decimal places and how many leads it takes to win one customer. The optional sections add your qualified leads (for the close rate), your spend and revenue (for the cost and value of a lead) and a customer target (for the leads and budget it needs).
Count leads and customers from the same batch
Leads take time to turn into customers, so the most reliable figure compares a batch of leads with the customers that batch went on to produce: for example the leads that came in during March and the customers won from them so far. Comparing March’s leads with March’s sales mixes leads that have not yet had time to sign with customers who came from older leads, and the rate can then go above 100%.
Add a qualification stage
If your sales team qualifies leads before working them (marketing-qualified leads, sales-qualified leads or opportunities, depending on your CRM), enter how many were qualified. The calculator then splits the rate in two: the qualification rate (qualified leads ÷ leads) and the close rate (customers ÷ qualified leads). Multiplied together, they give back the lead conversion rate, which shows whether a low figure comes from the leads themselves or from the selling.
Measure the cost and value of a lead
Enter what the leads cost to bring in (advertising, events, tools, bought-in contacts) and the revenue the new customers generated, excluding VAT; enter spend excluding VAT too, unless you cannot reclaim it. You get the cost per lead and per customer, the average revenue per customer and the revenue per lead. Compare the cost per customer with the margin a customer leaves you, not with revenue alone.
Set a customer target
Enter the number of customers you want to win. At the same conversion rate, the calculator gives the leads you would need, rounded up to a whole lead, how many more that is than you have now and, if you entered your spend, the budget for those leads at the current cost per lead. The projection assumes the rate and the cost per lead stay the same as you look for more leads; either can change.
Rounding and using the result
Rates are rounded to two decimal places and leads per customer to one; money is rounded to the nearest penny, with halves rounded up. The leads needed are worked out from the exact rate, not the rounded one, then rounded up to a whole lead; the budget likewise starts from your spend, not the rounded cost per lead. Copy the result in one click, export it as a CSV file or save it to Priostack.
Lead conversion rate = customers won ÷ leads × 100
Leads per customer = leads ÷ customers
Qualification rate = qualified leads ÷ leads × 100; close rate = customers ÷ qualified leads × 100
Cost per lead = spend ÷ leads; cost per customer = spend ÷ customers
Leads needed = target customers × leads ÷ customers, rounded up to a whole lead
Budget = leads needed × spend ÷ leads
Example: 1,000 leads in a quarter, 40 new customers
Say a training company received 1,000 enquiries in a quarter; its sales team qualified 200 of them and it won 40 customers. Its lead conversion rate is 40 ÷ 1,000 × 100 = 4%, one customer for every 25 leads. The qualification rate is 20% and the close rate 40 ÷ 200 × 100 = 20%. It spent £20,000.00 on getting those leads, so a lead cost £20.00 and a customer £500.00. The 40 customers brought in £150,000.00 excluding VAT, an average of £3,750.00 per customer and £150.00 per lead. To win 60 customers next quarter at the same rate, it needs 60 × 1,000 ÷ 40 = 1,500 leads, 500 more, and a budget of 1,500 × £20.00 = £30,000.00 at the current cost per lead.
