Lead Conversion Calculator
Turn funnel math both ways — what your leads are worth in revenue, or exactly how many leads you need to hit a revenue goal.
Written by Dorothy Ibrahim, 10+ years in banking & finance
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How we calculate this
This tool runs funnel math in both directions: forward, from your leads through your close rate to projected revenue, and in reverse, from a revenue goal back to the number of leads your pipeline must produce. It can also chain a multi-stage funnel (lead to MQL to SQL to close) to show exactly where prospects drop off — usually a more revealing number than the overall close rate, because the weakest stage is where improvement is cheapest.
The formulas
- Customers won (forward mode)
- leads × close rate
- Projected revenue (forward mode)
- customers won × average deal size
- Customers needed (reverse mode)
- revenue goal ÷ average deal size
- Leads needed (reverse mode)
- customers needed ÷ close rate
- Effective close rate (multi-stage funnel)
- lead-to-MQL rate × MQL-to-SQL rate × SQL-to-close rateWhen the multi-stage funnel is on, this chained product replaces the single close rate.
Worked example
- Say you generate 500 leads, close 20% of them, and your average deal is $1,200.
- Customers won = 500 × 0.20 = 100 customers.
- Projected revenue = 100 × $1,200 = $120,000.
- In reverse: to hit a $150,000 goal you need $150,000 ÷ $1,200 = 125 customers, which at a 20% close rate means 125 ÷ 0.20 = 625 leads.
- With the multi-stage funnel on (40% lead-to-MQL, 50% MQL-to-SQL, 25% SQL-to-close), the effective close rate is 0.40 × 0.50 × 0.25 = 5%: 500 leads become 200 MQLs, then 100 SQLs, then 25 customers — $30,000 in revenue, with the biggest drop-off (300 leads) at the first stage.
Rates, benchmarks & sources
- Revenue = leads × close rate × deal size; multi-stage close rate = product of stage conversion rates. The tool does not judge your close rate against an industry benchmark. — Standard funnel arithmetic (no external benchmarks applied)
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- Assumes one average close rate and one average deal size across all leads. Lead sources differ enormously — 500 referral leads and 500 cold-list leads are not interchangeable, so run sources separately if their quality differs.
- Treats conversion as instant. Real pipelines have a sales cycle: the leads you generate this month may close next quarter, so the revenue projection is not a this-month cash forecast.
- The multi-stage rates are only as good as your CRM hygiene — inconsistent definitions of MQL and SQL, or stale pipeline records, will distort both the effective close rate and the drop-off picture.
- Does not model lead cost or profitability; pair it with the Ad Budget calculator to check whether the leads you need are affordable to buy.
Frequently asked questions
Should I work on getting more leads or closing more of the ones I have?
Run the math both ways before buying more leads. At the default numbers, raising the close rate from 20% to 25% wins 25 more customers from the same 500 leads — the same effect as generating 125 extra leads at the old rate, but without the acquisition cost. The biggest lever is usually the weakest funnel stage, not more volume at the top.
What is the difference between an MQL and an SQL?
A marketing-qualified lead (MQL) has shown enough interest to be worth marketing follow-up — downloaded a guide, attended a webinar, fits the profile. A sales-qualified lead (SQL) has been vetted as a real, reachable opportunity worth a salesperson's time. The exact definitions matter less than consistency: if your team defines them loosely, the stage rates you enter here will not mean much.
Why does the multi-stage funnel show a much lower close rate than I expected?
Because stage rates multiply. Rates of 40%, 50%, and 25% each sound respectable, but chained together they convert only 0.40 × 0.50 × 0.25 = 5% of raw leads into customers. This is the core insight of funnel math: small leaks compound, and fixing the single weakest stage raises the whole product more than a marginal gain at a strong stage.
How many leads do I need to hit my revenue goal?
Divide the goal by your average deal size to get customers needed, then divide by your close rate. At the defaults, $150,000 ÷ $1,200 = 125 customers, and 125 ÷ 0.20 = 625 leads. Then ask the honest follow-up: is your pipeline actually producing leads at that pace? If not, the gap tells you how much top-of-funnel work — or close-rate improvement — the goal requires.
What close rate should I be entering?
Your own measured rate: customers won divided by leads received over a recent, representative period. Close rates vary so much by industry, price point, and lead source that a borrowed benchmark is close to meaningless — this tool deliberately applies no industry standard to your number. If you have never measured it, start tracking now and use a conservative estimate in the meantime.
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themoneysheet provides educational estimates, not financial, tax, or legal advice. Figures use published rates and formulas current as of the date shown, but your situation may differ. Consult a qualified professional (CPA, attorney, or licensed advisor) before making financial decisions.