Conversion rate formula
A "conversion" is whatever the page exists to produce: an order, a lead form, a sign-up, a call. Use one definition and keep it fixed so you can compare months.
Worked example
A store had 20,000 sessions and 400 orders, so its conversion rate is 400 / 20,000 = 2%. At a $75 average order that is $30,000 of revenue, or $1.50 per visitor. Raising conversion to 2.5% - one extra order per 200 visitors - would bring 500 orders and $37,500, an extra $7,500 from the same traffic. To get the same gain from ads at 2% conversion, you would need 5,000 more visitors.
Why revenue per visitor is the better number
Conversion rate on its own can mislead. A discount can raise conversion and lower order value so far that you earn less. Revenue per visitor captures both, which makes it the best single number to judge a test or a landing page change. It is also the ceiling for what you can pay per click: if a visitor is worth $1.50 in revenue and your gross margin is 40%, you can pay up to $0.60 per click and break even.
Typical conversion rates
| Type of page or business | Typical conversion rate |
|---|---|
| E-commerce store, all traffic | Around 1% - 3% |
| E-commerce, returning visitors | Often 2 - 3 times new visitors |
| Lead generation landing page | Around 3% - 10% |
| Free trial sign-up (SaaS) | Around 2% - 8% of visitors |
| Email traffic to a store | Usually higher than paid social |
Ranges vary hugely by price point, industry, device and traffic source. A luxury store at 0.8% may be doing better than a discount store at 3%. Compare with your own history first.
Common conversion rate mistakes
- Mixing users and sessions. Session-based rates are lower than user-based ones. Pick one.
- Blending traffic sources. One spike of low-intent traffic (a viral post, a cheap display campaign) drags the average down even if nothing is wrong with the site. Segment by source.
- Ignoring mobile. Mobile usually converts lower than desktop; a mobile-only problem hides inside the average.
- Declaring victory too early. Small samples swing a lot. Size tests properly with the sample size calculator.
Turn a better conversion rate into an ad budget with the break-even CPA calculator.
Frequently asked questions
What is a good conversion rate?
For most online stores 1% to 3% is typical, and lead generation pages often convert higher. The right benchmark is your own past performance for the same traffic source.
How do I calculate conversion rate in Google Analytics?
Divide key events (conversions) by sessions or users for the same period and multiply by 100. Make sure the numerator and denominator use the same date range and filters.
Is a higher conversion rate always better?
Not if it comes from discounts that cut order value or margin. Watch revenue per visitor and profit, not just the rate.