– Free tool for life insurance agents
Life Insurance Lead ROI Calculator. Find Your Real Cost Per Policy.
Cost per lead is the number vendors want you to look at. Cost per policy is the one that pays your bills. Plug in two lead sources and see which one actually makes you money.
Free · No email required · Works for term, IUL and final expense
– The calculator
Compare two lead sources side by side.
Start with your policy economics, then enter the price, contact rate and close rate for each source. Results update as you type.
Your policy economics
Applies to both lead sources.
Commission per policy: $720
Of annual premium
Lead source A
e.g. exclusive leadsLeads you actually speak to
Of the leads you speak to
Lead source B
e.g. shared leadsLeads you actually speak to
Of the leads you speak to
Results
Source A
Source B
Total lead spend
$2,500
$1,000
Conversations
30
17.5
Policies written
4.5
1.4
Cost per policy
$556
$714
First-year commission
$3,240
$1,008
Net profit
$740
$8
Return on lead spend
30%
1%
Break-even close rate
12%
8%
The starting numbers are examples, not LeadCraft results or industry benchmarks. Enter your own rates. Figures ignore chargebacks, renewals and overrides.
– The maths behind it
How to calculate ROI on life insurance leads.
Every number in the calculator comes from these eight formulas. You can run them on a napkin, but the calculator is faster.
Worked example (the starting numbers)
50 leads at $50 is $2,500. A 60% contact rate gives 30 conversations, and a 15% close rate gives 4.5 policies. At $800 premium and 90% commission, each policy pays $720, so 4.5 policies pay $3,240.
That's a $740 profit, about a 30% return, at a cost of $556 per policy. The same 50 leads at $20, with 35% contact and 8% close, cost $714 per policy and barely break even.
| Metric | Formula |
|---|---|
| Lead spend | Leads bought × price per lead |
| Conversations | Leads bought × contact rate |
| Policies written | Conversations × close rate |
| Commission per policy | Average annual premium × first-year commission % |
| Cost per policy | Lead spend ÷ policies written |
| Net profit | (Policies written × commission per policy) − lead spend |
| ROI | Net profit ÷ lead spend |
| Break-even close rate | Price per lead ÷ (contact rate × commission per policy) |
– What moves the numbers
Four things that decide your return on lead spend.
Price per lead is only one input. These four usually matter more.
Speed to lead
The first few minutes after a quote request are when people answer. Every hour you wait pulls your contact rate down, and the whole calculation with it.
Contact rate
Shared leads get several calls at once, so fewer people pick up for you. Exclusive, verified leads give you more conversations per dollar.
Close rate
Pre-screened leads let you quote close to the final rate on the first call. Fewer surprises at underwriting means more policies placed.
Persistency
Chargebacks on lapsed policies eat into your first-year commission. Leads who asked for coverage, and expected your call, tend to keep it.
Want leads built for higher contact rates? See how our exclusive leads work.
– Straight answers
Life insurance lead ROI: common questions.
How agents think about lead cost, cost per policy and break-even.
How do you calculate ROI on life insurance leads?
Multiply the policies you write by your commission per policy, subtract what you spent on leads, then divide by that lead spend. For example, $2,500 of leads that produce $3,240 in first-year commission is a $740 profit, or about a 30% return.
Why compare cost per policy instead of cost per lead?
Because cheap leads can be the most expensive way to write a policy. A $20 lead that closes 1 time in 36 costs you about $714 per policy, while a $50 lead that closes 1 time in 11 costs about $556. Cost per policy is what actually comes out of your commission.
What is a break-even close rate?
It's the close rate (of the leads you actually speak to) at which your commissions exactly cover your lead spend. Close above it and you make money; close below it and you lose money. The calculator works it out from your price per lead, contact rate and commission per policy.
What's a good cost per policy for life insurance leads?
Any cost per policy below your commission per policy is profitable on first-year commission alone. The further below, the more room you have for chargebacks, slow months and growth. Use your own commission and premium numbers to find your ceiling.
Does the calculator include chargebacks or renewals?
No. It looks at first-year commission only, so it doesn't account for chargebacks, renewals, overrides or bonuses. If you know your chargeback rate, lower your first-year commission % to reflect it.
Are the starting numbers LeadCraft's results?
No. The starting numbers are examples to show how the maths works. They aren't LeadCraft results or industry benchmarks. Enter your own contact and close rates for a real answer.
– Take the next step
Test the numbers with real leads.
Run a 20-lead term life pilot at $50 per lead, track your own contact and close rates, then put them back into the calculator.
No long-term contract. Start with a 20-lead pilot at $1,000 USD.