# What is conversion rate?

> Conversion rate is the share of clicks or visitors that complete a goal, like a purchase. Formula, a worked example in rupees and five ways to raise it.
- **Author**: Marxx
- **Published**: 2026-11-15
- **Category**: Metrics
- **URL**: https://marxx.ai/library-glossary/conversion-rate

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Conversion rate is the share of people who finish the action you want, such as buying or signing up. Google Ads defines it as the average number of conversions per ad interaction, shown as a percentage ([Google Ads Help](https://support.google.com/google-ads/answer/2684489), checked 2026-10-20). If 50 of 1,000 clicks convert, your conversion rate is 5%.

## The formula

Conversion rate = conversions / clicks (or visitors) x 100

Pick one base and keep it. Ads reports use clicks. Website analytics often use sessions. The two will not match.

## A worked example

Say your ad gets 2,500 clicks at INR 12 each. That is INR 30,000 in spend. 60 people buy.

- Conversion rate = 60 / 2,500 x 100 = **2.4%**
- Cost per purchase = 30,000 / 60 = **INR 500**

You improve the landing page. Conversion rate rises to 3%. The same 2,500 clicks now give 75 purchases.

- Cost per purchase = 30,000 / 75 = **INR 400**

You paid the same for traffic and cut your cost per sale by INR 100. The link is simple: [CPA](/glossary/cpa) = [CPC](/glossary/cpc) / conversion rate. Here, 12 / 0.024 = INR 500, and 12 / 0.03 = INR 400.

## What is a good conversion rate?

There is no single good number. It depends on your product, price, traffic source and what counts as a conversion. Google also notes that the rate can pass 100% if you count every conversion, since one click can lead to several.

Compare against your own last 90 days, and compare like with like. A INR 500 item and a INR 50,000 item are different sales.

## Five ways to raise it

1. Match the landing page to the ad. Same offer, same words, same picture.
2. Cut the steps. Fewer form fields and fewer clicks to pay.
3. Make the page load fast on a phone.
4. Show proof near the button: reviews, ratings, a clear return policy.
5. Offer the payment options your buyers already use.

Check [bounce rate](/glossary/bounce-rate) and [add-to-cart rate](/glossary/add-to-cart-rate) to see where people leave.

## FAQ

### Is conversion rate the same as CTR?

No. CTR is clicks divided by impressions. Conversion rate is conversions divided by clicks. See [CTR](/glossary/ctr).

### What counts as a conversion?

Whatever action you tell your tool to track. A purchase, a lead form, a call or an app install can all count.

### Why is my conversion rate different in Meta and Google Analytics?

They count differently and use different windows and bases. Compare trends inside each tool, not across them.

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