Business Advertising

Conversion rate calculator

Ad spend
Impressions
Clicks
Conversions
Revenue
Conversion rate 5 %
100 ÷ 2000 × 100
The rest of the funnel
CPM 10
CPC 0.5
CPA 10
Click-through rate 2 %
ROAS 5×
Profit 4,000
Revenue per click 2.5
Conversions ÷ clicks · a different denominator gives a different number

Conversion rate is conversions divided by the traffic that produced them, as a percentage. This panel divides by clicks: 100 conversions from 2,000 clicks is 5%. Change the denominator to sessions or to people and the same 100 conversions gives a different number, so the denominator has to travel with the figure.

How to calculate conversion rate

1 Decide the denominator before anything else. Clicks, sessions and users are three different numbers.
2 Enter conversions counted over the same window, from the same system, under the same attribution model.
3 Read the percentage, and the CPA it implies at your current cost per click.
4 Compare it against your own history first, and against a category benchmark only second.
5 Before acting on a difference, check whether you had enough traffic for the difference to mean anything.

Conversion rate earns its reputation arithmetically. It divides into every upstream cost at once, so doubling it halves CPA and doubles ROAS without a single bid changing. On the figures above, a click costs 0.50 and a conversion costs 10; lift the rate from 5% to 6% and the conversion cost falls to 8.33 with the media plan untouched. Nothing else in the funnel pays back at that rate.

The denominator is where the number goes wrong, and this panel has made a choice on your behalf: conversions divided by clicks. An ad platform counts a click when someone taps the ad. Your analytics counts a session when the page loads and the tag fires. The two never match, because people leave before the page renders, because the platform and the analytics filter bots differently, and because one person clicking three ads is three clicks and often one session. Sessions in turn exceed people. Feed the same 100 conversions into all three and you get three defensible conversion rates, and comparing your clicks-based figure against somebody else’s sessions-based benchmark compares nothing at all.

The window is the second trap and gets far less attention. This is a ratio of two counts taken over the same dates, but the conversions in that period were not all produced by the clicks in it. Where the purchase decision takes a week, roughly a week of the conversions you are counting came from clicks before the window opened, while a week of the clicks inside it have not converted yet. If spend is flat the two errors cancel and nobody notices. If spend is climbing, the denominator inflates before the numerator catches up and the rate looks like it is falling. If you have just cut spend, the rate flatters you. Scaling a campaign and watching its conversion rate sag is very often this artefact rather than a real fall in quality.

For a benchmark with a stated definition rather than a remembered one: IRP Commerce publishes monthly e-commerce market data from its own platform, using transactions divided by sessions. In July 2026 its overall market rate was 2.26%. The useful part is not that figure but the spread underneath it: across the ten verticals it reported that month, Arts and Crafts converted at 5.23% and Baby and Child at 0.55%, a range of nearly ten to one. A single cross-industry number cannot tell you whether your rate is good, and any benchmark quoted without its category, its denominator and its date is decoration.

Two rows on this panel need reading with care. Profit here is revenue minus ad spend and nothing else, so it does not know about your cost of goods, your fulfilment or your fees; on the defaults it reads 4,000 on 5,000 of revenue, which is a number no shop has ever banked. Revenue per click is the figure to compare against your cost per click, and the pair of them replaces the profit row usefully: 2.50 in against 0.50 out.

Finally, the sample size. A 20% relative improvement measured on 200 visits is well inside the noise, and the temptation to act on it is strong precisely because the number moved a lot. Sizing a comparison between two variants is a different calculation from sizing a survey: it needs a baseline rate, the smallest difference you would act on, and a power level, and it produces a sample per arm. The sample size calculator on this site answers the survey question instead, sizing a single proportion to a chosen margin of error, so use it to ask how precisely you know one rate rather than to size a two-arm test. As a rough feel for the scale involved, distinguishing 5% from 6% reliably takes thousands of visits per variant, not hundreds.

What people use it for

  • Measuring a landing page test
  • Comparing traffic sources on quality rather than volume
  • Forecasting revenue from a traffic target
  • Diagnosing a drop in sales
  • Reconciling an ad platform’s conversion rate with the one in your analytics
  • Checking whether a rate that fell after scaling actually fell
  • Deciding whether a difference between two variants is large enough to act on

Questions

It depends entirely on the category. IRP Commerce reported an overall e-commerce market rate of 2.26% for July 2026, with its verticals that month running from 5.23% down to 0.55%. Compare against your own history first.

IRP Commerce — ecommerce market dataGoogle Analytics Help — key events
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