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Lead Score Cutoff Calculator

Which lead score cutoff maximizes profit, given what leads cost, how conversion rises with score, and what a conversion is worth?

Split your leads into score bands, say what share of volume falls in each band and how often each band converts (for example, to a funded loan), then set the price per lead and what a conversion is worth. The calculator tries every cutoff and shows which one earns the most. The starting numbers are an illustrative example, not benchmarks.

Score bands
Band 1 (lowest scores)
Band 2
Band 3
Band 4
Band 5 (highest scores)
Most profitable cutoff
Band 4 and above
Profit per month
$54,000
Leads bought
4,000
Break-even conversion rate
5%

The rule: each lead in a band earns its conversion rate × $600 and costs $30, so a band is worth buying while its conversion rate is above $30 ÷ $600 = 5%. Here that points to band 4 and above.

Every cutoff, per month
BuyLeadsConversionsCostRevenueProfitCost / conversion
Band 5 only2,000180$60,000$108,000$48,000$333
Band 4 and above (best)4,000290$120,000$174,000$54,000$414
Band 3 and above6,000360$180,000$216,000$36,000$500
Band 2 and above8,000400$240,000$240,000$0$600
Band 1 and above10,000420$300,000$252,000−$48,000$714
−$48kBand 1+$0Band 2+$36kBand 3+$54kBand 4+$48kBand 5+

This assumes every lead in a band costs the same and converts at the band's average rate, and that buying fewer leads does not change the price. Measure each band's conversion rate on leads you actually bought and followed to the outcome you care about, such as funded loans rather than approvals, and recheck the cutoff when prices, lender demand or the score itself change.

How it works

A lead score is only useful once you decide where to draw the line. This calculator groups leads into score bands, each with its own share of volume and conversion rate, and shows the leads, conversions, cost, revenue, profit and cost per conversion for every possible cutoff. Use it to see which cutoff earns the most and how that cutoff moves when lead prices or the value of a conversion change.

Each band's leads are monthly leads times its share of volume (shares are scaled to add up to 100%), and its conversions are those leads times its conversion rate. A cutoff buys every band at or above it. Profit is conversions times the value of a conversion minus leads times the price per lead, and the calculator picks the cutoff with the highest profit. Each band adds its conversion rate × value − price per lead, so it is worth buying while its conversion rate is above price ÷ value. Every lead in a band is assumed to cost the same and convert at the band's average rate.

π(c)=∑b≥cNb (rb v−p)\pi(c) = \sum_{b \ge c} N_b\,(r_b\,v - p)
buy band b  ⟺  rb>p/v\text{buy band } b \iff r_b > p/v
where
cc
lowest band you buy
NbN_b
leads in band b
rbr_b
conversion rate of band b
vv
value per conversion
pp
price per lead
π(c)\pi(c)
monthly profit at cutoff c

Frequently asked questions

What is a lead score cutoff?
The score below which you stop buying, calling or routing leads. Leads at or above it are bought; leads below it are declined or sent to a cheaper path.
How do I find the break-even conversion rate?
Divide the price per lead by what a conversion is worth. At $30 a lead and $600 a conversion, a band needs to convert above 5% to pay for itself. Bands above that rate add profit; bands below it subtract it.
What should count as a conversion?
The outcome that actually earns money, such as a funded loan rather than an approval or an application, valued at what it is worth to you. A score trained on the wrong outcome can rank leads well on paper and still put the cutoff in the wrong place.
Where do the band inputs come from?
From your own history: score past leads you bought, group them into bands such as deciles or quintiles, and measure each band's share of volume and conversion rate. The defaults (five equal bands converting from 1% to 9%, $30 a lead, $600 a conversion) are an illustrative example, not benchmarks.
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