United States · Lead generation
Pay-per-lead profit.
If you buy or generate leads and sell them to local businesses, enter what a lead costs you, what it sells for and how many get rejected. See profit per lead, per hour, and the reject rate that wipes it out.
Profit per lead = price per lead x (1 - reject rate) - cost per lead. In the example, a $40.00 lead with 12% rejected and an $18.00 cost earns $17.20 per lead, $1,664.00 a month after fixed costs, and breaks even at a 55.00% reject rate.
Your funnel
Every figure above is your own assumption, not a quoted rate. Runs in your browser; nothing is sent or stored.
Result
Paid per lead or per closed job
This form models selling a lead at a flat price. If you are paid only when a referral becomes a job, the arithmetic changes: revenue per lead = close rate x job value x your commission, and the unknown that matters is the close rate. The lead generation economics guide walks through both, and the second worked example there uses a 20% close rate, a $600.00 job and a 15% commission to get $18.00 per lead and $0.00 profit. Choose the commission model in the form to run it with your own numbers; the flat-price fields are ignored in that mode and the commission fields are ignored in the flat-price mode.
Worked example
You buy or generate 120 leads a month at $18.00 each and sell each for $40.00. The buyer rejects 12%. Revenue per lead after rejects = $40.00 x 88% = $35.20; profit per lead = $17.20 (48.9% margin). Over a month, 120 x $17.20 - $400.00 fixed = $1,664.00. At 60 hours that is $27.73 per hour before tax and $20.72 after estimated tax. Break-even reject rate = 1 - $18.00 / $40.00 = 55.00%: above that, every lead loses money.
How it works
Revenue per lead is the price times the share not rejected. Profit per lead subtracts your cost. Monthly profit multiplies by lead volume and subtracts fixed costs. Per-hour figures divide by the hours you enter. If the cost per lead is above the price, the tool says the model loses money even with zero rejections, instead of showing a nonsensical negative break-even. Leads per month needed to cover fixed costs = fixed costs / profit per lead, rounded up.
After tax
The after-tax lines use the IRS self-employment rules in IRS Topic No. 554, Self-employment tax: self-employment tax is 15.3% (12.4% Social Security plus 2.9% Medicare) applied to 92.35% of net earnings, you can deduct one-half of it, and you usually owe it once net earnings reach $400. The Social Security part stops at the annual wage base, which the model sets at $184,500 for 2026 (confirm on the Social Security Administration contribution and benefit base page) to match our self-employment tax calculator. Your income tax rate is an input; state tax and credits are not modelled, and the model treats this activity as your only self-employment income for the year. Filing details are on IRS Schedule SE (Form 1040) and IRS Schedule C (Form 1040).
Because the inputs are monthly, the tool annualises monthly profit x 12 to apply the self-employment rules and shows the result per month.
Compliance notes for lead sellers
Selling or referring leads can involve consent rules. The FCC's rules implementing the Telephone Consumer Protection Act are in 47 CFR 64.1200 (FCC telemarketing and TCPA rules), and the FTC's Telemarketing Sales Rule is in 16 CFR Part 310, FTC Telemarketing Sales Rule. Many states add their own rules. In general terms, the way a lead was collected, and what consent the person gave, can affect whether a buyer can lawfully contact them and whether a lead is worth anything. This page collects no personal data about any lead or buyer and does not give legal advice; ask a lawyer before you build a lead business.
What this does not cover
- Whether leads are lawful to collect, sell or contact. Consent, do-not-call and state licensing rules are outside this arithmetic.
- Whether buyers will accept the leads, pay on time, or keep buying.
- Refund timing, buyer disputes, and cash-flow gaps between buying leads and getting paid.
- Referral rules in regulated fields such as insurance, mortgage or legal, where fee sharing may be restricted.
Sources
Retrieved October 2026. The formulas are arithmetic on the numbers you enter. The pages below are where to read the current rules and rates yourself.
- 47 CFR 64.1200 (FCC telemarketing and TCPA rules): rules on calls and texts to consumers
- 16 CFR Part 310, FTC Telemarketing Sales Rule: telemarketing rules
- IRS Topic No. 554, Self-employment tax: self-employment tax rules
- IRS Schedule SE (Form 1040): reporting self-employment tax
Results vary. This page models the assumptions you type in. It does not report what anyone earns, predict sales, or promise income. It is general information, not tax, legal or financial advice.
Frequently asked questions
How do I calculate profit per lead?
Multiply the price you sell a lead for by the share that is not rejected, then subtract what the lead cost you. The calculator also multiplies by volume and subtracts fixed monthly costs.
What is the break-even rejection rate?
It is 1 minus cost per lead divided by price per lead. Above it, each lead loses money. If cost is higher than price, there is no reject rate that breaks even.
How do I model getting paid per closed job?
Revenue per lead = close rate x job value x your commission. The economics guide shows a worked example.
Is lead generation legal?
Often, but consent and contact rules apply, and some fields restrict referral fees. See the linked FCC and FTC rules and check with a lawyer.