Lead Source ROI Calculator for Insurance Agents
What is my true cost to acquire a policy from this lead source?
Enter your spend, lead count, and funnel conversion rates, and this calculator carries the cost through contact, appointment, and issued-policy stages to find your true cost per acquired policy and overall ROI. It is the number that actually tells you whether a lead source is working, not just what a lead costs up front.
Business planning estimate only, not a guarantee of results. Actual outcomes depend on your producers, scripts, and market. Kadence does not provide financial advice.
How the math works
Carrying spend through the funnel
Starting from your lead count, the calculator applies contact rate, then appointment rate, then close rate in sequence, so each stage's cost per unit reflects everything lost before it.
Cost per acquired policy
Total spend divided by policies issued. This is the number that lets you compare lead sources on equal footing, since it absorbs every conversion step, not just the sticker price of a lead.
Revenue, net return, and ROI
Revenue is policies issued times your average commission per policy. Net return is revenue minus spend, and ROI expresses that net return as a percentage of spend.
Where Kadence fits
Contact rate is usually the weakest link in the funnel, and it is driven by how fast a lead gets a response. Kadence answers or books the calls your producers miss in seconds, so the contact-rate input here goes up without spending more on leads.
Related terms and guides
Frequently asked questions
What is cost per acquired policy?
Cost per acquired policy is total lead spend divided by the number of policies issued from that spend. It is the truest cost figure for comparing lead sources, because it accounts for every step of the funnel, not just the cost of a raw lead.
Why does contact rate matter so much for ROI?
Contact rate determines how many leads ever become a real conversation. A cheap lead source with a low contact rate can end up costing more per policy than a pricier source that reliably gets producers on the phone, because the funnel math compounds at every stage.
How do I compare two lead sources fairly?
Run each source through the same funnel: spend, leads, contact rate, appointment rate, close rate, and average commission per policy. Compare the resulting cost per acquired policy and ROI side by side, using the same time period and commission assumption for both.
Is this calculator a guarantee of results?
No. This is a business-planning estimate based on the rates you enter. Actual results depend on your producers, scripts, follow-up speed, and market. Kadence does not provide financial advice; use this to compare sources, not to promise an outcome.