SuanSupplyWhat is a conversion rate?
A conversion rate is the percentage of visitors who complete a goal. In an online shop the goal is usually an order. For a service business it might be a booking or a quote request, and for a newsletter it is a sign-up. It is one of the most useful numbers in marketing because it connects traffic to results.
What is the conversion rate formula?
With the calculator's example numbers: 48 orders from 2,400 visitors is 48 ÷ 2,400 = 2.00%. That means one order for every 50 visitors. Use the same kind of count on both sides: sessions with sessions, clicks with clicks, or unique visitors with unique visitors.
Which numbers go with conversion rate?
| Metric | Formula | Example |
|---|---|---|
| Average order value (AOV) | Revenue ÷ conversions | $1,440 ÷ 48 = $30.00 |
| Revenue per visitor | Revenue ÷ visitors | $1,440 ÷ 2,400 = $0.60 |
| Cost per conversion (CPA) | Cost per click ÷ conversion rate | $0.80 ÷ 2% = $40.00 |
| Break-even cost per click | Profit per order × conversion rate | Depends on your margin |
Revenue per visitor is the number that decides how much you can pay for traffic. If each visitor is worth $0.60 in sales and you keep 35% of that as profit, a click costing more than about $0.21 loses money. Our ROAS calculator works out the break-even point for your ads.
What kinds of conversion rate are there?
- Ecommerce conversion rate: orders ÷ sessions. Etsy shows this in Shop Stats, and Shopify shows it in Analytics.
- Ad conversion rate: conversions ÷ ad clicks, reported by Google Ads, Meta, Etsy Ads and Amazon (Amazon calls it unit session percentage on listings).
- Lead conversion rate: leads ÷ visitors, or customers ÷ leads for a sales team.
- Email conversion rate: clicks or purchases ÷ emails delivered.
What is a good conversion rate?
It depends heavily on what you sell, the price, the traffic source and the device, so published averages are a rough guide at best. Warm traffic, such as returning customers and email subscribers, converts far better than cold ad clicks. The most useful comparison is your own rate over time, for the same traffic source.
How can you improve your conversion rate?
- Match the page to the search. The listing or page should show exactly what the ad or search result promised.
- Better photos and a clear first line. Most shoppers decide from the first image and the title.
- Show the total price early, including shipping, so there are no surprises at checkout.
- Collect reviews and answer common questions on the page.
- Cut wasted traffic. Clicks from searches that don't fit your product lower your rate and cost money. Amazon sellers can find them with the ACoS calculator and a search term report.
Track conversions, cost per conversion and ROAS for every campaign
Our Ad Spend and ROAS Tracker works out CTR, CPC, conversion rate, cost per conversion and profit for each campaign, and tells you what to scale or cut. Pay once, no account, and your data stays on your device.
Frequently asked questions
How do you calculate conversion rate?
Divide the number of conversions by the number of visitors and multiply by 100. 48 orders from 2,400 visitors is a 2% conversion rate.
What counts as a conversion?
Any goal you choose: a purchase, a sign-up, a booking, a quote request or a download. Decide on one goal per calculation so the rate means something.
Should I use sessions or users?
Either works if you use the same one every time. Sessions count visits, so a shopper who comes back twice counts twice; users count people.
How do I calculate cost per conversion?
Divide your ad spend by the number of conversions, or divide your cost per click by your conversion rate. $0.80 per click at a 2% conversion rate is $40 per conversion.
Why is my conversion rate low?
Common causes are traffic that doesn't match the product, unclear photos or prices, high shipping costs shown late, few reviews, or a slow or confusing checkout on mobile.
Does a higher conversion rate always mean more profit?
Not always. Deep discounts can raise conversion rate while lowering margin. Check revenue per visitor and profit per order as well.
This calculator gives estimates for planning. Analytics tools count visitors and conversions in different ways, so compare numbers from the same source.