KPIMarketing

Cost per SQL

Average total marketing cost to generate one Sales Qualified Lead

What is Cost per SQL?

Cost per sales qualified lead (SQL) is the average marketing spend needed to produce one lead that sales has accepted as ready for a sales conversation. It divides total marketing spend by the number of SQLs generated.

It sits closer to revenue than cost per lead, because an SQL has passed both marketing and sales checks.

How this KPI is measured

Function
Marketing
Sub-function
Demand Generation
Industry
All Industries
Type
Lagging
Impact
Efficiency
Unit
$
Measurement frequency
Monthly / Quarterly
Formula
Total marketing spend / Number of SQLs generated

How to calculate it

Divide total marketing spend by the number of SQLs generated in the same period.

For example, if 60,000 was spent in a quarter and 120 SQLs were generated, the cost per SQL is 60,000 / 120 = 500.

Agree the SQL definition with sales, use a consistent spend definition, and break the figure down by channel to find the cheapest sources of sales-ready leads.

Where it is used

  • Comparing channels on sales-ready output

    Judge sources by leads sales will actually work.

  • Planning budgets

    Work out what is needed to hit an SQL target.

  • Aligning marketing and sales

    Share a metric both teams accept.

How to improve it

Tips and common mistakes

  • Do not compare with cost per lead. They measure different stages.
  • If sales rejects many leads, check whether the definition is realistic.
  • Include the cost of marketing staff and tools for a full picture.

More Marketing kpi library

← All kpi library

Build better plans, faster

Join the waitlist for early access to curated insights, flexible templates, and rapid iteration across strategy, planning, and project management.