Cost per lead (CPL) is a metric that shows you whether or not your marketing and ad spend are cost effective. It's calculated by dividing the total marketing spend by the number of leads generated. For example, if you acquired 100 leads through Google Ads that cost $1000, the CPL would be $10.

Cost per lead lets you know if you're spending the ideal amount when acquiring new leads using your advertising channels such as Google Ads or Facebook Ads. The higher the CPL compared to your industry's benchmark CPL, the less effective the marketing campaign is. The lower the CPL, the better.