How to calculate cost per opportunity
Cost per opportunity (sometimes cost per SQL) moves the efficiency question one stage down the funnel, from leads to real, qualified deals. Because opportunities predict revenue far better than raw leads, this metric is more decision-grade than cost per lead.
It bridges cost per lead and CAC. A channel can produce cheap leads but expensive opportunities if its lead quality is poor, which is exactly what this metric exposes.
- Spend / opportunities The formula
- Mid-funnel Closer to revenue than CPL
- By channel Where to break it down
Short answer
Cost per opportunity is the average spend to create one qualified opportunity. Divide sales and marketing spend in a period by the number of opportunities created in that period. If you spent 100,000 dollars and created 50 opportunities, cost per opportunity is 2,000 dollars. It is a sharper efficiency metric than cost per lead because opportunities are closer to revenue.
Step by step
Total the relevant spend
Sum sales and marketing spend for the period. Some teams use marketing spend only for a cost-per-SQL view; be explicit about which.
Count opportunities created
Count qualified opportunities created in the period, using a consistent definition of what qualifies as an opportunity.
Divide spend by opportunities
Cost per opportunity equals spend divided by opportunities created. Segment by channel to compare where qualified pipeline comes from most efficiently.
Connect it to CAC
Combine cost per opportunity with your opportunity-to-close rate to estimate CAC. This links mid-funnel efficiency to the full cost of winning a customer.
Worked example
In Q1 you spent 300,000 dollars on demand generation and created 100 qualified opportunities, so cost per opportunity is 3,000 dollars.
If your opportunity-to-close rate is 25 percent, it takes 4 opportunities to win a customer, implying roughly 12,000 dollars of demand-gen cost per customer before sales costs. That chain, cost per opportunity times deals per win, is how mid-funnel efficiency rolls up into CAC.
How Ardovo handles it
Ardovo computes cost per opportunity by channel and links it to opportunity-to-close rates and CAC, so the whole funnel economics tie together. Rook flags a channel with cheap leads but expensive opportunities, the classic lead-quality problem.
Frequently asked questions
What is the cost per opportunity formula?
Sales and marketing spend in a period divided by the number of qualified opportunities created in that period. It is a mid-funnel efficiency metric that predicts revenue better than cost per lead.
How is cost per opportunity better than cost per lead?
Opportunities are qualified and closer to revenue than raw leads, so cost per opportunity reflects real pipeline efficiency. A channel with cheap leads but expensive opportunities has a lead-quality problem that CPL alone hides.
How does cost per opportunity relate to CAC?
Multiply cost per opportunity by the number of opportunities needed to win a customer (1 divided by your opportunity-to-close rate) to estimate demand-gen cost per customer, a major component of fully loaded CAC.