Formula to Calculate Conversion Rate
Calculating your conversion rate is essential for understanding the effectiveness of your marketing campaigns, landing pages, and website design. The conversion rate represents the percentage of visitors who complete a desired action out of the total number of visitors.
How to Use the Formula
To perform this calculation manually or using the tool above, you need two distinct metrics:
- Total Visitors: The total number of unique sessions, clicks, or users who visited the page or site during a specific time period.
- Total Conversions: The number of visitors who completed the specific goal (e.g., made a purchase, signed up for a newsletter, downloaded a PDF).
Calculation Example
Let's say you run an e-commerce store. In the month of January, your analytics show the following data:
- Your website received 25,000 visitors.
- Out of those visitors, 650 people made a purchase.
Applying the formula:
(650 ÷ 25,000) = 0.026
Multiply by 100 to get the percentage:
0.026 × 100 = 2.6% Conversion Rate
Why is Conversion Rate Important?
Understanding your conversion rate allows you to evaluate the return on investment (ROI) of your traffic generation efforts. A high amount of traffic is meaningless if it doesn't convert. By optimizing your conversion rate (CRO), you can lower your customer acquisition costs and increase revenue without necessarily paying for more traffic.
Advanced Metrics: CPA and CPV
While the conversion rate tells you how often people convert, it doesn't tell you the cost efficiency. This calculator also provides:
- Cost Per Acquisition (CPA): Total Cost / Total Conversions. This tells you how much you spend to get one customer.
- Cost Per Visitor (CPV): Total Cost / Total Visitors. This tells you how much you pay for every click or visit.