Question 1

How is conversion rate calculated?

Accepted Answer

Conversion Rate = (Conversions / Total Visitors) × 100. For example, if you had 500 conversions from 20,000 visitors, your conversion rate is (500/20000) × 100 = 2.5%.

Question 2

What is a good conversion rate?

Accepted Answer

The average website conversion rate is 2-5%. E-commerce sites average 1.5-3%, SaaS landing pages 3-7%, and lead generation forms 5-15%. Anything above 5% is generally considered above average, and 10%+ is excellent.

Question 3

What is the difference between CTR and conversion rate?

Accepted Answer

CTR (Click-Through Rate) measures how many people click your link out of those who see it: Clicks / Impressions. Conversion Rate measures how many visitors complete a desired action: Conversions / Visitors. CTR is about getting clicks; conversion rate is about what happens after.

Question 4

How do I calculate cost per conversion?

Accepted Answer

Cost Per Conversion = Total Ad Spend / Number of Conversions. For example, if you spent $500 on ads and got 25 conversions, your cost per conversion is $500 / 25 = $20. This is also called Cost Per Action (CPA) or Cost Per Acquisition.