How the calculator works
It runs the same sum I'd do with you on a call, just faster:
- Ad budget = leads you want × cost per lead.
- New customers = leads × close rate.
- Revenue = new customers × average customer value.
- Return per $1 = revenue ÷ (ad budget + management fee).
The defaults are made-up example numbers so the calculator has something to show. They are not averages or benchmarks. Replace them with your own.
Where to get a realistic cost per lead
This is the number people guess wrong most often, because Meta doesn't publish a price list. Ads are sold in an auction, so the cost depends on your audience, your area, the time of year and how good the ad is. Three honest ways to estimate it:
- Your own history. If you've run ads before, divide what you spent by the leads you got. That beats any estimate.
- A small test. Run a modest budget for two to three weeks with one clear offer, then use the real cost per lead here.
- Ads Manager's estimates. When you set up a campaign, Ads Manager shows estimated results for your budget and audience. Treat them as a rough guide, not a promise.
Lead vs customer: a "lead" is a form, call or message. Not everyone who enquires books. That's why the close rate matters as much as the ad cost: doubling your close rate has the same effect as halving your cost per lead.
If the numbers don't work
When the calculator says the ads won't pay for themselves, more budget won't fix it. Look at these first:
| Lever | What to change |
|---|---|
| Offer | Give a reason to act now: a first-visit price, free quote within 48 hours, limited spots |
| Landing page | Send people to one page with one button, not your homepage. See landing page vs website |
| Speed of reply | Leads go cold fast. Reply within minutes during opening hours if you can |
| Customer value | Count repeat visits. A client who comes back every six weeks is worth far more than one visit |
More on reading real costs in Facebook ads cost.