Revenue per lead
Project value × lead-to-estimate rate × close rate. On average, that’s the revenue each new lead brings in.
Before you judge what a lead costs, know what it’s worth. Enter your numbers and see the revenue and gross profit behind every lead that comes in.
By the BlueSmith team · Updated
Each lead is worth (revenue): $2,625
$25,000 project, 35% margin, 35% of leads booked, 30% of estimates closed.
See what we’d build for these numbersStarts with example numbers. Change them to yours. Arithmetic only, not a promise of results.
Enter your average project value and gross margin.
Add the share of leads that become booked estimates.
Add the share of estimates you close.
Project value × lead-to-estimate rate × close rate. On average, that’s the revenue each new lead brings in.
Revenue per lead × gross margin. This is the number to hold up against what you pay per lead.
1 ÷ (lead-to-estimate rate × close rate). It tells you how many leads you need for each job you sign.
$15,000 project, 40% of leads book, 30% of estimates close: $1,800 revenue per lead. At a 30% margin, $540 gross profit per lead. About 8.3 leads per signed job.
No. It’s an average built from your inputs. Real leads vary, and any single month can land well above or below it.
Cost only means something next to value. In the example above, a $150 lead worth $540 in gross profit is a better deal than a $40 lead from a source that rarely books.
Book more of them and close more estimates. Faster response, better qualifying, and steady follow-up raise both rates without touching your ads.
Use them anyway, then track for a couple of months and rerun it. A rough number you check beats no number at all.
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