How much should Google Ads cost per lead?

There's no single right cost per lead — it depends on what a customer is worth to you and how many leads become customers. Industry averages can mislead because they mix very different businesses. Your own numbers give a far better answer.

Work out what a lead is worth

Lead value = average customer value × the share of leads that become customers.

If a typical customer is worth a certain amount in profit and one in four leads becomes a customer, a lead is worth a quarter of that. Your maximum cost per lead should sit below that, leaving room for profit.

Make sure leads are counted correctly

A cost per lead is only as good as the conversion tracking behind it.

If Google Ads counts page views or button clicks as conversions, the cost per lead will look better than reality. If tracking is broken, it'll look worse. Check what each conversion action measures.

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Different leads deserve different targets

Separate high-value and low-value services, and phone calls from forms, before judging cost per lead.

Emergency versus routine work
New customer versus repeat customer
Large projects versus small jobs

Use a calculator with your own numbers

Our free budget calculator works out clicks and cost per lead from the numbers you enter — no invented averages.

Frequently asked questions

Is a lower cost per lead always better?

No. Cheap leads that never become customers cost more in the end than expensive leads that do. Judge cost per customer where you can.

Why does my cost per lead change so much month to month?

Small accounts have few leads, so a handful more or less changes the number a lot. Look at longer periods before drawing conclusions.

Can Claritad tell me my cost per lead?

Claritad shows cost per conversion from your account and flags when tracking makes that number unreliable.