How do you calculate cost per lead?
Divide the spend by the leads, for one channel and one period. Spend includes the ad budget and, if you want the full picture, what you pay to run the channel. Leads should be counted from your own records, such as call logs, form emails and booking software, rather than from each platform's own conversion count, which often counts differently.
Pick one period
A full month, or a full season for seasonal work.
Add up the spend
The channel's ad spend for that period, plus any management or tool cost if you are comparing total cost.
Count real leads
Calls over a minimum length, form submissions and bookings, with spam and repeat calls removed.
Divide
Spend divided by leads is the cost per lead.
Why does cost per lead matter for a roofer?
Because roofing leads are not all worth the same, CPL only means something next to what the leads turn into. A roofer comparing a lead seller, Local Services Ads and its own Google Ads needs one definition of a lead across all three, and a note of which leads became inspections and signed jobs.
For example, one channel produces cheaper leads, but many are shared with other contractors or ask for repairs the company does not do. Another costs more per lead, but most are exclusive and ask for replacements. Counted only by CPL, the first channel wins. Counted by cost per signed job, the second often does.
Related terms
Conversion rate
The share of visitors who become leads, the other half of what sets CPL.
Exclusive leads
Leads that come to one business only, against leads shared with several.
Local Services Ads
Google's pay-per-lead ads, where CPL is the billing unit.
Landing page
The page an ad sends people to, which often decides how many become leads.
We measure cost per lead, and cost per job, in our paid advertising work and in roofing lead generation.
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