DoorlarkWhat each number means
- Cost per closing: what you paid this source for every deal that closed from it. The number to compare sources on.
- Net per closing: what one closing puts in your pocket after the referral fee, your brokerage split and per-closing fees. Before taxes and your own expenses.
- ROI: profit divided by cost. 100% means every $1 spent came back as $2. Negative means the source is losing you money.
- $ back per $1: the plain version of ROI, gross of cost: net commission earned for each dollar you spent.
- Payback (closings to cover a month): how many closings you need each month just to cover what the source costs. Under 1 means a single deal pays for the month.
- Months to break even: only shows if you add a one-time setup cost (a website build, a mailer design). How long the monthly profit takes to earn that back.
- Weakest step: the conversion step with your lowest %. It isn't compared to anyone else's numbers, just to your other two steps.
How we calculate
Monthly cost = monthly spend (or cost per lead × leads) + other monthly costs Closings per month = leads × lead→appt % × appt→client % × client→closing % Gross commission = avg sale price × your side commission % Net per closing = gross × (1 − referral %) × (1 − brokerage split %) − per-closing fees Cost per closing = monthly cost ÷ closings per month Monthly profit = net per closing × closings per month − monthly cost ROI = monthly profit ÷ monthly cost $ back per $1 = (net per closing × closings) ÷ monthly cost Payback closings = monthly cost ÷ net per closing Break-even per lead = (net per closing × closings per month − other monthly costs) ÷ leads Months to break even= one-time setup cost ÷ monthly profit (only if profit > 0)
Commission is your side only. Enter the percentage of the sale price paid for your side of the deal, not the total. Order matters: the referral fee comes off the gross commission first, then your brokerage split, then flat per-closing fees. If your referral agreement or broker calculates it another way, adjust the numbers to match. If a step is 0% or you enter no leads, there are no closings, so cost per closing shows "No closings" instead of dividing by zero.
Worked example
These are the example inputs from Source 1, not benchmarks.
| Leads: 20 a month at $50 each | $1,000 a month |
| 20 × 30% to appointment × 40% to client × 50% to closing | 1.2 closings a month |
| $400,000 × 2.5% your side | $10,000 gross |
| $10,000 × (1 − 0% referral) × (1 − 20% split) − $0 fees | $8,000 net per closing |
| $1,000 ÷ 1.2 | $833 per closing |
| $8,000 × 1.2 − $1,000 | $8,600 monthly profit, 860% ROI |
| Raise lead → appointment from 30% to 35% | 1.4 closings, $714 per closing |
How to improve each step
Lead to appointment. This is mostly speed and the second message. Answer inside 5 minutes, then make your next text useful instead of asking for a call. The exact texts are in the Qualified Lead Playbook, section 2.
Appointment to signed client. Run the same consultation every time and be ready for the commission question. The Buyer Consultation Kit has an agenda and replies to 8 objections. For open house visitors, see section 4.
Client to closing. Clients go cold when nobody owns the next step. The Friday pipeline review in the Daily Lead Roadmap gives every active client a next step and a date.
The source itself. If you can't count a single closing from a paid source after 6 months, cut it in half and put the money and time into your sphere. Section 3 walks through it.
FAQ
How do I calculate cost per closing for real estate leads?
Add up everything you paid the source over a period (monthly spend, or cost per lead times leads), plus any fixed costs tied to it. Divide by the number of closings that came from that source in the same period. If you track conversion rates instead of closings, closings = leads × lead-to-appointment % × appointment-to-client % × client-to-closing %.
Is the commission % my side or the total commission?
Your side only: the percentage of the sale price your brokerage is paid for your side of the deal. If you represent the buyer and the seller isn't paying buyer-side compensation, use what your buyer agreement says you'll be paid.
In what order are the referral fee and brokerage split applied?
Referral fee first, then the brokerage split, then flat per-closing fees. Referral fees are usually paid out of the gross commission before the split, but check your referral agreement and your broker's policy, since some calculate it differently.
Are the default numbers industry averages?
No. They're example numbers so the calculator isn't empty. They aren't benchmarks and we don't publish conversion benchmarks, because there's no neutral source for them. Replace every field with your own numbers from your CRM.
What's a good cost per closing?
It depends on what a closing nets you. The useful test is the ROI line: if a source returns less than you spend after your split and fees, it's losing money no matter how cheap the leads look. Also count your time, which this calculator doesn't.
How many months of data should I use?
At least 6, ideally 12. Many leads close months after the first contact, so a one-month snapshot makes most paid sources look worse than they are, and a good month makes them look better.
Does Doorlark save my numbers?
No. Everything runs in your browser. Your inputs live only in the page address so you can bookmark or share them; we don't receive them.
By Doorlark Editorial Team. For planning only, not financial or tax advice. Commission and referral terms come from your own agreements.