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CPL (Cost Per Lead)

CPL is ad spend divided by leads generated. CPL is a top-of-funnel metric and should be connected to paying-customer outcomes (CAC).

Updated 2026-01-23

Definition

CPL is ad spend divided by leads generated. CPL is a top-of-funnel metric and should be connected to paying-customer outcomes (CAC).

Formula

CPL = ad spend / leads

Example

If you spend $2,000 for 160 leads, CPL is $12.50.

How to use it

  • Define lead quality tiers so CPL does not hide low-quality volume.
  • Use CPL with lead-to-customer rate to estimate CAC.
  • Track CPL by channel and audience to spot saturation or fatigue.

Common mistakes

  • Optimizing CPL and destroying lead quality (CAC rises).
  • Changing lead definitions (MQL/SQL drift) and breaking comparisons.
  • Ignoring conversion lag when evaluating CPL changes.

Why this matters

This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.

Practical checklist

  • Write a 1-line definition for "CPL (Cost Per Lead)" that your team will use consistently.
  • Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
  • Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
  • Use a calculator that references this term (e.g., CPL to CAC Calculator) to sanity-check assumptions.
  • Read the related guide (e.g., CPL to CAC: why lead gen metrics mislead (and how to fix it)) for context and common pitfalls.

Where to use this on MetricKit

Calculators

  • CPL to CAC Calculator: Convert cost per lead (CPL) into CAC using lead-to-customer rate (and compute targets).

Guides