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Lead Generation ROI Calculator

Enter your numbers and we'll estimate your return on ad spend, payback period, and net profit. Pick your industry to prefill realistic NZ benchmarks.

We'll fill in typical cost per lead, job value, and close rate. Adjust any field to match your business.

$

What you plan to spend on ads each month (excludes management).

$

Revenue from a typical job or first sale.

%

Out of 10 leads, how many become customers? (30% = 3 out of 10)

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Not sure? Check industry benchmarks

These calculations are estimates based on typical performance. Actual results may vary based on industry, competition, ad quality, close rate, and other factors. Indicative NZ benchmarks, your numbers will vary.

How This Calculator Works

This calculator estimates your return on ad spend by working through the same chain that drives every paid campaign: budget to leads, leads to customers, customers to revenue.

  1. Leads: Ad budget ÷ cost per lead = leads generated
  2. Customers: Leads × close rate = new customers
  3. Revenue: Customers × average job value = revenue
  4. Net profit: Revenue − ad spend = net profit (before delivery costs)
  5. ROI: (Revenue − ad spend) ÷ ad spend × 100 = ROI %
  6. Payback period: Ad spend ÷ revenue × 30 = days of revenue to cover your spend

If you start from a customer target instead of a budget, we run the same chain in reverse to work out the ad spend you'd need, then calculate your ROI from there.

The biggest levers on your ROI are your close rate and your cost per lead. Following up leads within 10 minutes lifts close rates, while sharper targeting and better landing pages bring your cost per lead down. Plan your spend with the Ad Budget Calculator, or see what a customer is really worth with the Customer Lifetime Value tool.

ROI Calculator FAQs

How do you calculate lead generation ROI?

ROI is your return on ad spend as a percentage. The formula is (revenue minus ad spend) divided by ad spend, multiplied by 100. For example, if you spend $2,000 on ads and generate $8,800 in revenue, your net profit is $6,800 and your ROI is 340%. This calculator works backwards from your cost per lead, close rate, and average job value to estimate that return.

What is a good ROI for paid lead generation?

A healthy paid campaign for a local service business returns several times its ad spend once leads are followed up quickly and qualified properly. Across our NZ clients we average a 340% return on ad spend, though your numbers will vary by industry, offer, close rate, and how fast you respond to leads.

What does payback period mean in this calculator?

Payback period is the number of days of revenue it takes to cover your monthly ad spend. We calculate it as ad spend divided by monthly revenue, multiplied by 30. A shorter payback period means your ad investment is recovered faster, which lowers your risk.

How is net profit calculated here?

Net profit in this tool is your projected revenue minus your ad spend only. It does not include your cost of delivery, staff, materials, or management fees, so treat it as a top-line estimate rather than your final take-home profit. Use the Customer Lifetime Value tool to factor in repeat business and referrals.

My ROI looks low. What should I change?

The three biggest levers are your close rate, your cost per lead, and your average job value. Improving how fast you follow up (we contact leads within 10 minutes) lifts close rates, sharper targeting and better landing pages lower cost per lead, and bundling or upselling raises average job value. Small gains in each can swing a campaign from marginal to highly profitable.

What if the leads do not show up?

We guarantee 30 qualified leads in 30 days or 100% money back, backed by a legal contract. The numbers in this calculator are estimates, but the guarantee removes the downside risk of finding out whether the maths works for your business.