Auto Lead ROI Calculator

Find out what your leads actually return, not what the invoice says they cost.

Enter four numbers for a single lead source: leads per month, cost per lead, your close rate on that source, and your average total gross per unit, front and back combined. The calculator multiplies leads by close rate to get units, units by gross to get revenue, and compares that against what the leads cost. The outputs that matter are cost per sale and net return.

Run it separately for every source you pay for. Blending sources into one average is how a weak provider hides behind a strong one for six months.

The math is easy; the discipline is not. A few rules keep the answer honest:

• Count all the costs. Include monthly platform fees, per-lead charges, and any staff time dedicated to a source, not just the invoice line.
• Use closed and funded deals, not appointments or pencils.
• Attribute deals to the source that created them, even when the customer walked in two weeks after the first text. This is where CRM discipline earns its keep.
• Give a source a fair window. Internet and prospecting leads often close 30 to 90 days after first contact, so judging a new source on week two undercounts it.
• Use your real gross, not a hopeful number. If subprime deals carry more back-end gross at your store, use the source-specific figure.

There is no universal benchmark, and be suspicious of vendors who quote one without context. Close rates vary widely with lead type, exclusivity, response speed, and follow-up discipline. Directionally, industry experience is consistent on a few points: shared leads sold to multiple stores close at the low end because you are racing other dealers to the same customer; exclusive leads and leads from your own website tend to do better; and fast, persistent follow-up moves the number more than the source itself.

Rather than borrowing someone else's benchmark, use this calculator to find your break-even close rate: the rate at which a source merely pays for itself. Then measure your actual rate against it. A source can have a mediocre close rate and still be profitable if the cost per lead is low, and a cheap source can quietly lose money if nobody works it. Our guide to measuring auto lead quality covers the leading indicators to track before 90 days of close data exist.

Cost per lead is the number vendors advertise; cost per sale is the number that shows up on your financial statement. Illustrative example: Source A sells leads at $25 and closes at 4%, which is $625 per sale. Source B charges $60 per lead and closes at 12%, which is $500 per sale. The "expensive" source is the cheaper one where it counts, and it also consumed a third as many salesperson hours per deal.

This is the case for judging every source on cost per sale and return, not sticker price. For context on what stores typically spend, see how much dealerships pay per lead, and note that some providers, LeadLocate included, offer pay-per-sale style programs that tie cost directly to outcomes.

None of this math works without source attribution, and source attribution lives or dies in the CRM. Every lead should enter with a source tag that survives all the way to the funded deal. Practically, that means: one CRM record per customer, source locked at creation, every call and text logged against it, and a monthly report of leads, contacts, appointments, sales, and gross by source.

LeadLocate's built-in CRM does this by default. Leads land already tagged, texting and dialer activity log automatically, and managers can see which sources produce deals rather than just activity. If your current tools cannot answer "what did each sale cost us by source," that is a tooling problem worth fixing before buying more leads.

If a source returns well, the usual move is to expand territory or volume before a competitor does. If it breaks even, fix the process first: response time and follow-up cadence rescue more sources than renegotiating price does. If it loses money after a fair window and a real process, cut it without sentiment.

LeadLocate programs are month-to-month with no long-term contract, which makes them easy to test against this exact math. Watch the pre-recorded demo to see how leads, texting, and reporting fit together.

What is a good cost per sale for automotive leads?

It depends on your average gross and your market. A useful test: compare cost per sale for each lead source against your total per-unit gross, and against what your other channels deliver. A source is good when it beats your alternatives, not when it hits an arbitrary number.

What close rate should I plug in for a new lead source?

Start with the vendor's honest range if they offer one, then replace it with your own data as soon as you have 60 to 90 days of results. In the meantime, calculate the break-even close rate and judge early performance against that.

Should I include salesperson time in lead ROI?

For comparing sources, cash costs are usually enough. But if one source demands triple the calls per deal, that time has a real cost in missed opportunities, and it belongs in the decision even if it never hits the calculator.

How long before I can fairly judge a lead source?

Most stores need at least 60 to 90 days, because internet and prospecting leads often close weeks after first contact. Judge early weeks on contact and appointment rates, then judge the quarter on funded deals and gross.

Why does my CRM show fewer lead sales than the vendor claims?

Usually attribution. Deals that started as a text conversation get logged as walk-ins when nobody connects the visit to the record. Tighten your process so every customer is searched in the CRM before a fresh record is created.

Month-to-month programs, no long-term contract, and a CRM that tracks every source to the sold unit. Run the numbers, then run a real trial.