What is Cost Per Lead?

Cost Per Lead (CPL) tells you how much you’re spending to acquire one lead. It’s calculated like this:

Formula:
Total Spend ÷ Number of Leads = Cost Per Lead

It’s one of the most important numbers in lead generation—and now it takes seconds to calculate.

 

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Want to lower your CPL?

If your cost per lead is creeping up, you’re not alone. Here’s how top marketers bring it down:

• Use multi-step forms to increase conversion rates (like Growform 😉)

• Match ad creative more closely to the form experience

• Cut friction—remove unnecessary fields

• Test new channels and optimise ad spend

And if you want even more qualified leads? Try Growform. Our multi-step forms are designed to convert better than traditional forms—especially on paid traffic.

Try Growform free →

 

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FAQs

What is cost per lead (CPL), exactly?

Cost per lead (CPL) is a simple but powerful metric that shows how much you’re paying to acquire one lead. It’s calculated by dividing your total spend by the number of leads generated. So if you spend $1,000 on ads and get 100 leads, your CPL is $10. It’s one of the clearest ways to understand how efficient your lead gen efforts really are.

What’s a “good” cost per lead?

There’s no one-size-fits-all answer here. A good CPL depends on your industry, your product or service, and how much revenue you make per customer. For example, a B2B software company might be fine with a CPL of $150–$300 if each closed customer is worth thousands. But a local service business or ecommerce brand might need CPL to stay under $30 to remain profitable. Use CPL as a guide, but always measure it alongside your close rate and customer lifetime value (LTV).

How can I lower my cost per lead?

Lowering CPL usually means improving your conversion rates or targeting more efficiently. Here are a few quick wins:

• Use multi-step forms, like the ones you can build with Growform—they’re proven to convert better than long, single-page forms.

• Match your ad creative and landing page message. Misaligned messaging is a huge drop-off risk.

• Cut unnecessary fields from your forms. Only ask what you need upfront.

• Test different traffic sources. Facebook might work better than Google, or vice versa.

• Optimise your audience targeting and bidding strategies if you’re running paid campaigns.

A lower CPL doesn’t always mean better leads—so also watch lead quality and sales conversions.

Can I use this calculator for different campaigns?

Absolutely. That’s one of the best ways to use it. Just enter the numbers from each campaign (like Facebook Ads, Google Ads, SEO, or LinkedIn), one at a time. Then compare the CPLs. It’ll help you spot which campaigns are pulling their weight and which ones need a rethink.

Is this calculator really free?

Yes—completely free. You don’t need to create an account, hand over your email address, or deal with annoying pop-ups. Just enter your numbers and get your results. We built this tool to make life easier for marketers, growth teams, and founders who want fast answers without the fluff.

Does Growform help reduce CPL?

Yes. That’s one of the main reasons people use Growform. Our multi-step forms are designed to convert better than traditional forms—especially for high-intent, paid traffic. When more visitors complete your form, your CPL naturally drops. Plus, you can customise every step to fit your funnel, making the experience smoother and more engaging for your audience.