# Marketing ToolBox:

# Conversion Rate Calculator

Learn more about the conversion rate calculation below.

## Conversion Rate Defined

Our conversion rate calculator can get you started with becoming aware of your current conversion percentage.

Conversion rate is defined as a value that informs us of what percentage we are achieving a specific desired result.

**Technically speaking it is the desired outcome divided by total interactions.**

For example, if you have 1,000 visitors to your website (the total interactions) and of that total 15 choose to take a predefined action, such as clicking on the contact us button, then the conversion rate is 15/1000=0.015 or 1.5% once multiplied by 100

## Conversion Rate Questions

**What is a conversion rate?**

Conversion rate is the percentage of the time that the desired action occurs given a specific amount of events. The most common example of conversion rate is the number of website visitors that take a specific desired action on a website.

**What is a good conversion rate?**

A good conversion rate is typically said to be between 2% to 5%. However, it can vary wildly depending on the type of business or vertical. Small increases in conversion rate yield large results. A jump from 2% to 3% over a sample of 1000 is the difference in 20 to 30 (which is huge if it’s sales).

**How do you calculate funnel conversion?**

The actual math for a funnel conversion is no different than calculating a conversion rate. It is the total number of desired actions divided by the total number of potential desired actions. However, you can calculate the conversion rate throughout an entire marketing funnel to calculate funnel conversion. One would calculate the total desired actions at each funnel step by the total potential actions at each step.

**Why is conversion rate optimization important?**

The conversion rate percentage is important because it is directly connected to the cost of acquisition for the desired action. If you can get the desired action to occur more frequently per 100 instances you will make more money. Conversion rate optimization is important because it will lower your customer acquisition costs and pay for itself over x amount of time.

**How do I optimize my website for conversion?**

There is no quick and easy answer to this question. Rather it involves several activities. One primary tool is A/B testing is important as it allows you to test alternatives and find a winner based on the conversion rate. Another tool is creating landing pages with best practices.

## Guide to Manual Conversion Rate Calculation

How to calculate a conversion rate?

**Find the total number of Interactions****Find the total number of desired outcomes****Divide the total number of desired actions by the total number of interactions****Multiply this number by 100 to get a percentage**

## Need help calculating your website conversion rate?

Drop us a line and we will be glad to help you get a handle on your conversion rate. We will help you personally create a conversion rate calculator system that works for you. We can also help you begin A/B testing to increase your conversion rate.

A big part of having a healthy conversion rate is having enough traffic for that conversion rate to be meaningful. A 5% conversion rate on leads with 500 visitors a month is far less than a 5% conversion rate with 1000 visitors. Let us help you with an SEO package.