Conversion Rate: Definition, Formula & Tracking

Conversion rate measures the share of a defined population that completes a defined action. The formula is simple, but the denominator must match the business question.

Basic formula

Conversion rate = conversions ÷ opportunities × 100. An “opportunity” might be sessions, users, clicks, leads or another population depending on the funnel stage.

Choose the denominator deliberately

Purchase rate per session and purchase rate per ad click answer different questions. Label reports clearly so teams do not compare unlike denominators.

Segment carefully

Source, device, audience and landing page segments can reveal useful differences, but small samples can produce unstable rates.

Pair rate with volume

A high conversion rate on tiny traffic can generate less profit than a lower rate on large traffic. Evaluate rate together with conversion count, cost and revenue.