Business & Commerce
Intermediate

Conversion Rate

The share of visitors or leads that take the desired action.

Formula

CR=ConversionsVisitors×100%CR = \dfrac{Conversions}{Visitors}\times 100\%

Variables

CRConversion rate
ConversionsDesired actions
VisitorsTotal visitors

Example

300 sales / 10000 visits = 3%

How it works

Conversion rate tells you how efficiently a page, campaign, store, or sales process turns total traffic into the outcome you want. It works by dividing the number of successful actions by the number of people who had the opportunity to act, then multiplying by 100 to express the result as a percentage. This makes it easy to compare performance across different periods or channels, even when the visitor counts are very different.

When to use it

Use this when you want to measure how well a website, ad campaign, landing page, email, or sales funnel turns viewers into buyers, sign-ups, or other goal completions. It is especially useful for comparing two marketing channels or checking whether a change improved performance.

Worked example, step by step

A landing page received 8,500 visitors in a month. The page generated 255 sign-ups. Use the formula: CR = (Conversions / Visitors) × 100% CR = (255 / 8,500) × 100% CR = 0.03 × 100% CR = 3% So, the conversion rate is 3%.

Common mistakes to avoid

  • Using the number of conversions as the denominator instead of total visitors
  • Forgetting to multiply by 100 when reporting the rate as a percentage
  • Counting repeated actions from the same person as multiple visitors without checking the definition

Did You Know?

Typical e-commerce conversion rates hover around 2–3%, so small gains are worth large optimization efforts.

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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026