Define every funnel stage
Use consistent denominators:
- Contact rate: contacted leads ÷ total leads received.
- Quote rate: contacted buyers who receive a quote ÷ contacted buyers.
- Close rate: completed sales ÷ quoted buyers.
Some businesses define close rate as sales divided by all leads. That can be useful when labeled clearly, but it should not be mixed with a quote-to-sale close rate.
Calculate estimated funnel activity
These are estimates until replaced with actual outcomes.
Calculate cost per acquired sale
If no sales have closed, cost per acquired sale is not yet calculable. Display it as unavailable rather than zero.
Separate revenue from gross profit
Judge lead spend against gross profit, not revenue. Enter gross profit after the direct costs you normally include, but before lead acquisition cost; the calculator subtracts lead cost separately. When total lead cost is zero, ROI is unavailable rather than zero.
Calculate the break-even close rate
When close rate means sales divided by quotes:
This calculation requires at least one estimated quote and a positive gross-profit figure. If the result exceeds 100%, the entered economics cannot break even under those assumptions.
Replace estimates with actual sales data
Group leads by provider, program, category, and delivery period. Allow open quotes time to resolve, then update the estimate with actual results. Do not blend engine and general-parts inquiries, exclusive and shared programs, different territories, or different sales teams when those differences affect performance.
Use the auto parts lead ROI calculator to apply these formulas without saving or transmitting your inputs.