You conversion rate can be calculated in a number of different ways. In it’s most simplest form, a websites conversion rate is the number of online sales as a percentage of the number of visitors to a website.

It is one of the most important metrics for any website which has a conversion event. A conversion event can be a sale, lead, enquiry, download, or any other goal you want your website visitors to achieve.

But it can also be used in a number of other ways:

- Website conversion rate
- Facebook ad conversion rate
- Instagram ad conversion rate
- eDM conversion rate
- Paid Search conversion rate
- User > Purchase conversion rate
- Add to Cart > Purchase conversion rate

You get the idea.

## Conversion Rate Calculator:

Use our conversion rate calculator below to determine the conversion rate for your ads or website. There are multiple ways to use this calculator:

Most commonly, people use it to calculate the conversion rate of their website. For an eCommerce site this might mean caluclating what percent of people who visit the website, actually buy a product. For this calculations you’d enter the number of conversions in the first box below, and the number of website visitors in the second box below.

Other people use our conversion rate calculator to determine the conversion rate of their advertising. For example an eCommerce store might be running ads on Facebook, and want to know the conversion rate of Facebook Ads. For this, they’d enter the number of conversions they got from the Facebook ads in the first box below (using either the Facebook Tracking Pixel, or Google Analytics campaign tracking parameters), and the number of clicks they received from their Facebook Ads specifically (which they’ll be able to see in Facebook Ads Manager or Google Analytics as well).

## What is the Conversion Rate Formula?

The conversion rate formula is really simple. Although you don’t need to know it when using out conversion rate calculator above, it can be handy to know to get a deeper understanding of conversion rates.

The formula is simply **the number of conversions**, divided by the number of conversion opportunities, multiplied by 100.

Note that the *multipled by 100 *is to turn the number into a percentage.

Here are some conversion rate formula examples:

- eCommerce store conversion rate = the number of online sales, divided by the number of users to the website.
- Facebook Ad conversion rate = the number of online sales/leads from the Facebook Ads, divided by the number of clicks on those ads.
- Google Ad conversion rate = the number of online sales/leads from the Google Ads, divided by the number of clicks on those ads.

## What does Conversion Rate actually mean?

In it’s simplest form, the conversion rate answers the question “what percent of people *who had the opportunity* to do what I wanted them to do, *actually did what I wanted them to”. *

“What I wanted them to do”, as mentioned earlier, could be buy something, download something, optin to something, or any other online action.

Your conversion rate calculates the effectiveness of either your marketing channels, or your website, or a mix of both.

## Why is The Conversion Rate Important?

The conversion rate is one of the most important metrics in eCommerce and digital marketing. There is no point spending thousands, hundreds of thousands, or millions on digital marketing if your conversionr ate is 0%.

That means you are literally getting zero sales, and all your marketing budget is going to waste.

If you had a conversion rate of 1%, that means that for every 100 visitors you your website, 1 of them becomes a customer and purchases from your company.

Increasing that conversion rate slightly to 2% means you have doubled your sales. You don’t even need to spend more on marketing. Your website literally becomes twice as effective.

*That *is why conversion rate is so effective. To increase sales you can either throw more money at marketing and attracting *new *visitors to your website, or you can spend the same amount on marketing, improve your conversion rate, and then get more sales without spending an extra dime.

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