Calculator







Results:

Number of quotes you'll send:

Number of deals you'll close:

Total deal value (revenue):

Profit from deals generated by leads:

Profit after marketing spend:

Value per lead (revenue based):

Value per lead (profit based):
This is the teoretical MAX amount you can spend per lead (CPA) if you want to grow profitable with the inputs provided

Total marketing spend:

Cost per quote sent:

Cost per deal:

ROAS (based on total deal value):

ROAS (based on profit):

B2B Lead value and ROAS calculator

Introducing a comprehensive tool designed for B2B marketers to navigate through the complexities of advertising budgets and returns. Our calculator simplifies the process of evaluating media spend efficiency and optimizing Return On Ad Spend (ROAS) for informed decision-making and strategic planning

Understanding Marketing Spend & CPA

Marketing Spend represents the total cost of marketing and advertising campaigns (& agency cost). You should put this in to the field CPA to begin with: All your marketing spend divided with all your leads for a specific time period. That's your CPA. Later you can play with it, and only use the CPA from the media spend on a specific channel, if you also change the "number of leads" field to be only the leads coming from that channel.

The Importance and dangers of ROAS

Return On Ad Spend (ROAS) is a pivotal metric that measures the gross revenue generated for every dollar spent on advertising. A high ROAS indicates a successful advertising campaign, providing essential insights into the effectiveness of your marketing strategies and financial health.

Though, only optimizing for ROAS will most likely make your profit lower, since it does not take into consideration that a lower ROAS and a higher marketing spend can lead to more volume and more contribution dollar (Profit in money after ad spend). So what we really want is to get the profit after ad spend as high as possible, not the ROAS.

Calculator Inputs

  1. Average Deal Value: "The typical revenue generated per closed deal."
  2. Margin (%): "Your profit margin percentage."
  3. Average Closing Rate (%): "The percentage of quotes that successfully convert into deals."
  4. Lead to Quote Rate (%): "The conversion rate of leads into actionable quotes."
  5. Number of Leads: "Monthly generated leads through your marketing efforts."
  6. Cost Per Lead (CPA): "The investment required to generate each lead." (All marketing & agency spend divided by number of leads you get)

Outputs and Interpretations

  1. Quotes & Deals: Estimate the potential number of quotes sent and deals closed based on your lead generation efforts."
  2. Total Deal Value & Profit: "Understand the total revenue and profit from closed deals."
  3. Value Per Lead: "Gauge the top-line and profit-based value each lead brings to your business."
  4. Media Spend Insights: "Dive into your total advertising investment, cost efficiency per quote, deal, and the overarching ROAS to measure campaign success.
  5. ROAS: How many times do you get the marketing spend back (first in turnover, then in profit)

How to Use the Calculator

Input your average deal value, margin, closing rate, lead to quote rate, number of leads, and cost per lead into the designated fields. Click 'Calculate' to instantly receive a comprehensive analysis of your media spend efficiency and ROAS. Utilize these insights for data-driven decision-making

Now play around with these numbers on your case and use the tool for finding suitable marketing budget for growht or for understanding how marketing affects the revenue and profit, as well as finding suitable ROAS targets for your advertising campaigns.