~2 min read
Revenue per lead (RPL) is the most actionable metric for comparing marketing channel profitability. Unlike CTR (click-through rate) or CPL alone, RPL accounts for lead quality — a channel that generates cheap leads may still have terrible RPL if those leads don't convert or buy small.
The formula
Revenue per Lead = Total Revenue / Total Leads
With $480k revenue and 1,200 leads: RPL = $480k / 1,200 = $400/lead
Why RPL beats cost per lead
Cost per lead (CPL) measures acquisition efficiency. But a $10 CPL is worthless if those leads never close. RPL measures acquisition effectiveness — the actual revenue generated per lead regardless of cost.
Compare across channels:
| Channel | Leads | Revenue | RPL | Spend | CPL | ROI |
|---|---|---|---|---|---|---|
| Google Ads | 500 | $200k | $400 | $25k | $50 | 8× |
| LinkedIn Ads | 100 | $80k | $800 | $20k | $200 | 4× |
| Organic | 600 | $200k | $333 | $15k | $25 | 13× |
Google Ads has the same RPL as organic. LinkedIn has higher RPL (better lead quality) but also higher CPL. Organic has the best ROI but lowest RPL.
Conclusion: Scale organic first (highest ROI). Then Google Ads (good ROI, scalable). LinkedIn is expensive but generates high-value leads — keep small budget for enterprise.
RPL vs CAC
RPL is a marketing funnel metric. CAC (Customer Acquisition Cost) is a sales funnel metric. The relationship: - RPL × Lead-to-Customer Rate = Revenue per Customer (ACV) - CPL / Lead-to-Customer Rate = CAC
If RPL = $400 and lead-to-customer rate is 5%, your ACV implied is $8,000. If CPL = $50 and lead-to-customer rate is 5%, your CAC is $1,000.
Cohort matching for long sales cycles
For B2B with 60–90 day sales cycles, using the same period for leads and revenue creates a mismatch. Better approach: - Measure leads acquired in Q1 - Measure revenue closed in Q2–Q3 from those leads - Calculate RPL on a 6-month lag
This gives accurate attribution for long-cycle deals.
Frequently asked questions
What does this calculator do? Calculate revenue per lead and cost per lead by channel, compare channel ROI, and find how many leads you need to hit a revenue target.