CalculateY
Quick Answer
A website with 5,000 visitors and 250 conversions has a conversion rate of 5%. If those conversions generated $12,500 in revenue on $3,000 in ad spend, the ROAS is approximately 4.17x.
Revenue generated from conversions.
Total advertising cost for this traffic.
Common Examples
| Input | Result |
|---|---|
| 1,000 visitors, 50 conversions | 5.00% conversion rate |
| 10,000 visitors, 200 conversions, $6,000 revenue, $2,000 ad spend | 2.00% rate, $10.00 cost/conversion, 3.00x ROAS |
| 5,000 visitors, 250 conversions, $12,500 revenue | 5.00% rate, $2.50 revenue/visitor, $50.00 revenue/conversion |
| 50,000 visitors, 500 conversions, $25,000 revenue, $10,000 ad spend | 1.00% rate, $20.00 cost/conversion, 2.50x ROAS |
| 2,000 visitors, 80 conversions, $4,000 revenue, $4,000 ad spend | 4.00% rate, $50.00 cost/conversion, 1.00x ROAS (break-even) |
How It Works
This calculator uses the standard conversion rate formula along with several related marketing metrics:
Conversion Rate = (Conversions / Total Visitors) x 100
Cost Per Conversion = Ad Spend / Conversions
Revenue Per Visitor = Revenue / Total Visitors
ROAS = Revenue / Ad Spend
Where:
- Conversions = completed desired actions (purchases, sign-ups, downloads, form submissions)
- Total Visitors = the total number of visitors, impressions, or leads in the measurement period
- Ad Spend = total advertising cost used to generate those visitors
- ROAS = return on ad spend, expressed as a multiple (e.g., 3x means $3 revenue per $1 spent)
Interpreting conversion rate
Conversion rate varies widely by industry and channel. E-commerce sites typically see rates between 1% and 4%. Landing pages optimized for a single action often achieve 5% to 15%. B2B lead generation forms tend to fall in the 2% to 5% range. Comparing your rate against industry-specific benchmarks is more useful than targeting a universal “good” number.
ROAS and profitability
A ROAS of 1.0x means revenue exactly equals ad spend (break-even on ad cost alone, before accounting for product costs). Most businesses need a ROAS above 2x to 4x to remain profitable after factoring in cost of goods sold, fulfillment, and overhead. The required ROAS depends on your profit margins.
Worked example
An online store runs a paid search campaign. Over one month, the campaign drives 5,000 visitors to the site. Of those, 250 make a purchase, generating $12,500 in total revenue. The ad spend for the campaign was $3,000. Conversion rate = 250 / 5,000 x 100 = 5%. Cost per conversion = $3,000 / 250 = $12.00. Revenue per visitor = $12,500 / 5,000 = $2.50. Revenue per conversion = $12,500 / 250 = $50.00. ROAS = $12,500 / $3,000 = 4.17x. At 4.17x ROAS, every dollar of ad spend generates approximately $4.17 in revenue.