Calculator
The numbers in the fields are an example. Replace them with yours: where to find them is explained below.
- Leads a month
- 10
- Clients a month
- 2
- Profit a month
- $600
- Break-even cost per lead
- $60
- Break-even cost per click
- $1.2
How it is calculated
- Leads a month = visits × conversion to a lead.
- Clients = leads × the share of leads that became deals.
- Monthly profit = clients × average deal × margin.
- Payback = the price of the site ÷ monthly profit.
- Break-even cost per lead = average deal × margin × deal share. If a lead from ads costs more, the ads lose money.
- Break-even cost per click = break-even cost per lead × conversion to a lead.
Where to find your numbers
- Visits: Yandex Metrika or Google Analytics, the monthly visits report. For a new site, take the number of searches for your topic in Yandex Wordstat and count two variants, a cautious one and a bold one.
- Conversion to a lead: leads in a month divided by visits. Leads are counted by goals in Metrika: a form sent, a messenger click, a call.
- Deal share: how many leads out of a hundred become paid orders. A CRM shows it if it records where each lead came from.
- Average deal and margin: from your accounts. The margin is the share of the deal left after the cost of delivering it.
What changes the result most
Conversion is a multiplier in the formula, so raising it does as much as raising traffic. If it goes from 2 to 3%, there are half as many leads again from the same visits and the same ad budget.
Try it with your own numbers: raise the conversion in the calculator by one percent, then the visits by a third, and compare the payback time. Whichever is cheaper to move in your case is where to start.
When advertising pays off
Compare the break-even cost per click from the calculator with the cost per click the ad account shows for your queries. If the auction is pricier, the ads will lose money before they start: raise the site's conversion or the average deal first, then buy traffic.
Search optimisation works differently: a lead from it gets cheaper every month, but the first results take a few months. So ads bring leads fast, and search lowers their cost over time.