Lead ROI Calculator
See whether your lead spend pays off with first-year commission versus acquisition cost.
Lead ROI Calculator
See whether your lead spend pays off: first-year commission revenue versus acquisition cost.
Return on investment
-28%
Net loss -$700 · 10 policies closed
| Metric | Value |
|---|---|
| Commission revenue | $1,800 |
| Total lead cost | $2,500 |
| Cost per acquisition | $250 |
Estimate for planning only and reflects first-year commission. Renewal income, retention, and servicing costs will change the true return.
FAQs
- How do you calculate lead ROI?
- Lead ROI is net profit divided by total lead cost. Net profit is first-year commission revenue from closed policies minus what you spent on the leads. A 200% ROI means you earned three dollars for every dollar spent.
- What is a good conversion rate for insurance leads?
- It varies by lead type and line of business. Shared internet leads may convert in the low single digits, while warm referrals and exclusive leads convert much higher. Track your own rate to plan spend accurately.
- What is cost per acquisition?
- Cost per acquisition is total lead spend divided by the number of policies closed. It tells you what each new client costs to acquire, which you can compare against the policy's lifetime value.
- Does this include renewal income?
- No. The calculator uses first-year commission to keep the comparison conservative. Renewals typically make the true ROI higher over the life of the client.
Related Terms
Quote-to-Bind Rate
The percentage of issued quotes that result in a bound policy — a key conversion metric for agents, carriers, and digital distribution platforms.
Direct Response
Insurance sold directly to consumers via advertising, internet, mail, or phone—without agent intermediaries—enabling carriers to retain the full premium.
Comparative Rater
A comparative rater is software that lets agents enter client data once and receive quotes from multiple carriers simultaneously, enabling side-by-side price