05 November, 2025

How to Calculate Conversion Rate: Formula, Examples, Tips

05 November, 2025

Conversion rate is simply the percentage of people who take your desired action out of everyone who had the chance to do so. That action might be a purchase, a form submission, a trial sign‑up, or a click from an email. It turns traffic into a clear, comparable number so you can see which pages, ads, and campaigns actually work. For example, if 500 people act out of 10,000 reached, your conversion rate is 5%.

This guide shows you exactly how to calculate it with confidence. You’ll get the formula at a glance, a step‑by‑step method, channel‑specific examples (website, ecommerce, ads, email), how to choose the right denominator and time frame, and how to measure multi‑step funnels. We’ll also cover doing it in Excel/Sheets, finding it in GA4 and Google Ads, realistic benchmarks, common pitfalls, linking CR to revenue and ROI, quick CRO wins, and how AI can help. Let’s start with the formula.

The conversion rate formula at a glance

Conversion rate (often written as CVR) is the percentage of people who completed your chosen action out of everyone who could have. Choose a denominator that matches the context: website or ecommerce (visitors or sessions), email (recipients or clicks), and ads (clicks or ad interactions, as used in Google Ads). Then apply the simple maths.

Conversion rate (%) = (Number of conversions ÷ Total eligible audience) × 100

Example: 50 ÷ 1,000 × 100 = 5%.

Step-by-step: how to calculate conversion rate

Before you open a spreadsheet, get crystal clear on the action you’re measuring, who had the chance to take it, and over what period. That alignment is what turns a raw count into a meaningful, comparable conversion rate.

Define the conversion. Purchase, lead form, trial sign‑up, add‑to‑cart, etc.
Choose the denominator. Website/ecommerce: visitors or sessions. Email: recipients or clicks. Ads: relevant interactions (e.g., clicks/ad interactions in Google Ads).
Set the time frame and attribution window. Ensure numerator and denominator cover the same period (and window if applicable).
Pull the counts. Conversions and total eligible audience from your analytics/ad platform.
Clean the data. Exclude internal traffic, test orders, and duplicates.
Calculate the rate. CVR (%) = (Conversions ÷ Eligible audience) × 100 (e.g., 50 ÷ 1,000 × 100 = 5%).
Sense‑check. Compare to previous periods/channels; if it looks off, recheck the definitions and tracking.

Pro tip: track macro (sales) and micro (email sign‑ups) conversions separately.

Examples by channel: website, ecommerce, ads, and email

Seeing real numbers makes it easy to remember how to calculate conversion rate and why the denominator matters. In every case, keep your definitions consistent and use the same time frame for both conversions and the eligible audience so the percentage actually reflects performance.

Website (lead gen): 120 enquiry forms from 6,000 unique visitors. CVR = 120 ÷ 6,000 × 100 = 2%
Ecommerce (orders): 300 orders from 20,000 sessions. CVR = 300 ÷ 20,000 × 100 = 1.5%
Ads (Google Ads): 80 conversions from 2,000 ad interactions (clicks). CVR = 80 ÷ 2,000 × 100 = 4%
Email: 400 sign‑ups from 8,000 sends (send‑level). CVR = 400 ÷ 8,000 × 100 = 5%
Post‑click variant: 400 conversions from 1,600 clicks (landing‑page CVR). CVR = 400 ÷ 1,600 × 100 = 25%

Choose the right denominator and conversion definition

Your conversion rate only tells the truth if you’re precise about two things: what counts as a conversion and who had a real opportunity to convert. The denominator should be your “eligible audience”, and the conversion must be a single, clearly defined action, counted consistently across the same scope.

Website/ecommerce: Use either unique visitors or sessions—match it to how the conversion is recorded (user‑level vs session‑level) and stay consistent.
Ads (e.g., Google Ads): Use ad interactions/clicks as the denominator, then divide your tracked conversions by that total.
Email: For campaign conversion, use sends/recipients; for post‑click landing page conversion, use clicks.
Be specific: Track macro (purchases) and micro (sign‑ups, adds‑to‑cart) conversions separately; avoid blending different actions into one rate.

Set the right time frame and attribution window

Your conversion rate only makes sense if the numerator and denominator cover the same dates and the same attribution rules. In ads, for example, Google Ads calculates conversion rate as conversions divided by ad interactions that can be tracked to a conversion in the same period. And because users may click today and convert days later, define a clear attribution window (e.g., 1‑day or 7‑day click) so your maths reflects real behaviour.

Pick a reporting period and stick to it. Avoid mixing weeks or months.
Set and state your attribution window. Use a consistent 1‑day or 7‑day click window across comparisons.
Match numerator and denominator. Count only conversions attributed to the audience in that period/window.
Allow for late conversions. Finalise reports after the window closes and label them with the window used.

Calculate multi-step and funnel conversion rates

Most journeys are multi‑step, so measure conversion at each stage as well as the cumulative rate to find where people drop off. Use the audience who reach a stage as that stage’s denominator, and keep the same dates and attribution rules throughout. Report both retention (who progressed) and drop‑off (who didn’t), and track macro and micro conversions separately so you can prioritise fixes where the biggest leaks occur.

Stage conversion rate: Stage CVR (%) = (Conversions at stage ÷ Entrants to stage) × 100
Overall funnel conversion rate: Overall CVR (%) = (Final conversions ÷ Initial entrants) × 100
Drop‑off rate (per stage): Drop‑off (%) = 100 − Stage CVR
Worked example: 10,000 visits → 2,000 product views → 600 add‑to‑cart → 300 checkout → 240 orders. Stage CVRs: 20%, 30%, 50%, 80%. Overall CVR: 240 ÷ 10,000 × 100 = 2.4%.

Calculate conversion rate in Excel or Google Sheets

All you need is two numbers per row: conversions and the eligible audience (the denominator you chose earlier). Keep them on the same time frame and attribution. Then divide conversions by audience and format the result as a percentage so you don’t have to multiply by 100.

Single row: In D2 use =IFERROR(C2/B2,0) then format as Percentage (1–2 decimals).
Totals across many rows: Use sums, not an average of row rates: =IFERROR(SUM(C2:C100)/SUM(B2:B100),0).
Funnel stage rate: If C = entrants and D = stage conversions, =IFERROR(D2/C2,0).
Round neatly: =ROUND(D2,4) or =TEXT(D2,"0.0%").
Quick check: Denominator > 0 and definitions (session vs user) are consistent.

Where to find conversion rate in GA4 and Google Ads

You can read conversion rate directly in ad platforms and derive it in analytics. Whatever the tool, keep your denominator consistent with how the metric is counted, and use the same date range and attribution rules you used for the conversions themselves.

GA4 (Google Analytics 4)

In GA4, first mark your key events as “conversions”. Then, in your reports, pull Conversions alongside Users or Sessions and apply the formula you chose. For session‑scoped goals, use CVR = Conversions ÷ Sessions; for user‑scoped goals, use CVR = Conversions ÷ Users. To get a single figure for a period, use totals (not an average of daily percentages).

Google Ads

Google Ads defines conversion rate as conversions divided by total ad interactions that can be tracked to a conversion in the same period: CVR = Conversions ÷ Ad interactions. You’ll see this in your standard Google Ads reports by campaign, ad group and keyword. When comparing, align date ranges and attribution settings.

What is a good conversion rate? Benchmarks and context

There isn’t a single “good” conversion rate. It’s contextual—industry, audience intent, price point, and your chosen denominator all matter. Broadly, many websites see averages around 2–5% across industries, but niche, high‑intent offers can be higher and very broad traffic can be lower. As reach scales, conversion rate typically softens even if revenue grows, so judge performance against your own baseline and peers, not a universal number.

Traffic intent/source: branded and search beat broad display/social.
Device and UX: mobile constraints vs desktop ease.
New vs returning: loyal users convert more.
Offer complexity/price: higher AOV needs more nurturing.
Funnel friction: speed, forms, trust signals.
Seasonality/region: demand and timing shifts.
Measurement choices: users vs sessions; attribution window consistency.

Common mistakes to avoid when calculating conversion rate

Conversion rate is simple maths, but small definition errors can make the number meaningless. Before you compare channels or periods, sanity‑check that the action, denominator, dates, and attribution rules truly match. These are the slip‑ups that most often skew results.

Mixing users and sessions: Keep numerator and denominator at the same scope.
Wrong denominator: Ads use ad interactions/clicks; don’t use impressions for CVR.
Averaging percentages: Recalculate from totals; don’t average daily/row CVRs.
Blending goals: Don’t lump purchases, sign‑ups, and clicks into one rate.
Mismatched dates/windows: Align reporting periods and attribution windows, allow for late conversions.
Dirty data: Exclude bots, internal traffic, test orders, and duplicate submissions.

From conversion rate to revenue, ROI, and forecasting

Once you know how to calculate conversion rate, you can turn it into pounds and plans. Tie CVR to traffic and value per conversion to forecast revenue, set paid media targets, and sanity‑check ROI. Keep the same denominator you used earlier (sessions, clicks, or recipients) when you move from measurement to planning so your maths stays consistent.

Revenue: Revenue = Conversions × AOV = Traffic × CVR × AOV
Lead gen variant: Revenue = Conversions × Lead Value
CPA (cost per acquisition): CPA = Spend ÷ Conversions
ROI: ROI (%) = ((Revenue − Spend) ÷ Spend) × 100
Revenue break‑even CVR (ignoring margin): Break‑even CVR = Spend ÷ (Traffic × AOV)
Quick forecast example: 20,000 sessions × 2% CVR × £60 AOV = £24,000 revenue

Quick tips to improve your conversion rate (CRO checklist)

Small, focused tweaks often move the needle faster than full redesigns. Use this quick CRO checklist to lift conversion rate on high‑impact pages (landing pages, product pages, cart/checkout). Test one change at a time (A/B) and keep your definitions, time frame, and denominator consistent so improvements are attributable.

Put the CTA above the fold: Make “Buy now” or “Sign up” immediately visible.
Use action‑led copy: Dynamic, visitor‑centred language drives clicks (“Yes, sign me up!”).
Cut form fields: Ask only what’s essential to reduce friction.
Remove distractions: Trim extra links and competing CTAs near the primary action.
Add social proof: Reviews and testimonials reduce perceived risk.
Address pain points: Clearly state benefits and why it’s worth acting now.
Match ad to page: Use dedicated landing pages for paid traffic.
Offer a relevant incentive: Test bonuses, coupons, or free webinars by audience.
A/B test properly: Change one variable, run long enough for significance, then roll out winners.

Using AI to analyse and improve conversion rate

AI helps you spot why conversion rate moves, where the funnel leaks, and what to test next—faster than manual analysis. It clusters behaviour to uncover high‑intent segments, surfaces anomalies before they hurt revenue, and prioritises experiments by predicted impact so you spend time (and budget) where it matters most.

Pattern detection: Flag sudden CVR drops or step‑stage leaks with anomaly alerts and trend baselines.
Smart segmentation: Group visitors by intent/behaviour; personalise content and compare segment‑level CVR uplift.
Creative iteration: Generate headline/CTA variants, score likely impact, then A/B test one change at a time.
Predictive planning: Forecast Revenue = Traffic × CVR × AOV and recommend budget shifts to highest‑return channels.

Free conversion rate calculator and template

Grab our free, no‑frills calculator and spreadsheet template to speed up reporting and forecasting. Enter conversions and the eligible audience by channel (plus AOV and spend, if relevant) and it auto‑calculates the key metrics you’ve seen in this guide.

Conversion rate: CVR = Conversions ÷ Eligible audience
Revenue (ecommerce): Revenue = Conversions × AOV
CPA: CPA = Spend ÷ Conversions
ROI: ROI = (Revenue − Spend) ÷ Spend

Key takeaways

Conversion rate is simple: divide conversions by the eligible audience and express it as a percentage. Pick the right denominator, align dates and attribution, and calculate both stage and overall funnel rates. Tie CVR to traffic, AOV and spend to forecast revenue and ROI, then test to improve.

Formula: CVR (%) = (Conversions ÷ Eligible audience) × 100.
Denominator: Use clicks for ads, sessions/users for sites, sends or clicks for email.
Consistency: Match date range and attribution; report from totals, not averaged rates.
Funnel focus: Measure stage CVRs and drop‑offs to locate leaks.
Data hygiene: Exclude bots, tests and internal traffic before calculating.

Need a clear plan to raise CVR? Let’s talk — see how we work at MR‑Marketing.

michael.rushby