Marketing
Overall rate through a multi-stage funnel
Stage rates multiply because each acts only on the survivors of the previous one. Here 0.20 x 0.15 = 0.03, so 40000 visitors yield 1200 conversions.
The Formula
Overall rate = stage rate 1 x stage rate 2 x ... x stage rate n
Stage rates multiply because each acts only on the survivors of the previous one. Here 0.20 x 0.15 = 0.03, so 40000 visitors yield 1200 conversions.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| r1 | Rate through the first stage | decimal | Visitor to signup, for example. 0.20 keeps 8000 of 40000. |
| r2 | Rate through the second stage | decimal | Applied only to survivors. 0.15 of 8000 leaves 1200. |
| r | End-to-end conversion rate | decimal | The product of the stages, which must equal conversions divided by original visitors. |
What Each Symbol Means
r1decimal
Rate through the first stage
Visitor to signup, for example. 0.20 keeps 8000 of 40000.
r2decimal
Rate through the second stage
Applied only to survivors. 0.15 of 8000 leaves 1200.
rdecimal
End-to-end conversion rate
The product of the stages, which must equal conversions divided by original visitors.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate conversion rate page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Conversion Rate, filed under Business. Every number the guide produces comes from substituting into this one line.