Short definition
Cost per Lead (CPL) is the average amount spent on marketing to generate one lead. It’s calculated as total campaign spend divided by the number of leads. It is most useful when “lead” means a qualified enquiry, because cheap leads that never convert can make a campaign look better than it is.
How to calculate CPL
CPL = Total ad spend ÷ Number of leads. Example: ₹60,000 spent for 150 leads = ₹400 cost per lead.
Better versions of CPL
- Cost per qualified lead — only counts leads that meet your criteria
- Cost per site visit / demo / appointment — one step closer to revenue
- Customer acquisition cost (CAC) — total cost per paying customer
| Campaign A | Campaign B | |
|---|---|---|
| Spend | ₹50,000 | ₹50,000 |
| Leads | 250 (CPL ₹200) | 100 (CPL ₹500) |
| Qualified leads | 25 | 40 |
| Cost per qualified lead | ₹2,000 | ₹1,250 |