A conversion rate revenue calculator turns a visitor count into orders, then into money.
SBA’s marketing and sales pages tell you to compare marketing and sales costs with the revenue those efforts generate, and to keep a path from a visitor to a completed sale. The conversion funnel calculator is that path for one period:
Orders = visitors × conversion rate
Revenue = orders × average order value
Cost per order = ad spend ÷ orders
Return on ad spend = revenue ÷ ad spend
A conversion here is a completed order. The ticket is the average order value calculator: period revenue divided by orders. Months to recover the cost of one recurring customer are the customer acquisition payback calculator. Commission on the sales that closed is the sales commission calculator.
Refunds, tax, and shipping stay out unless you fold them into the ticket. These examples use the formulas. They are not a media plan.
Fig 1
Visitors down to revenue
The rate picks the orders. The ticket prices them.
Multiply visitors by the conversion rate, then by average order value. Ad spend divides into orders for a cost, and into revenue for a return.
Example 1. Ten thousand visits, 2.5% buy
The calculator’s published month.
- Visitors: 10,000
- Conversion rate: 2.5%
- Average order value: $80
- Ad spend: $2,000
Orders = 10,000 × 0.025 = 250.
Revenue = 250 × 80 = $20,000.00.
Cost per order = 2,000 ÷ 250 = $8.00.
Return on ad spend = 20,000 ÷ 2,000 = 10×.
Two hundred fifty orders at $80 is the whole month. The $8 cost is ads divided by those orders. It is not the cost of goods, and it is not a customer’s full acquisition cost if they needed a sales call after the click.
Calculator result
Conversion funnel revenue
- Visitors in the period
- 10000 visitors
- Conversion rate
- 2.5%
- Average order value
- $80.00
- Ad spend in the period
- $2,000.00
$20,000.00
funnel revenue
- Orders
- 250
- Cost per order
- $8.00
- Return on ad spend
- 10×
Example 2. What if the rate doubles?
Keep 10,000 visitors, the $80 ticket, and $2,000 of ads. Change the rate to 5%.
Orders = 10,000 × 0.05 = 500.
Revenue = 500 × 80 = $40,000.00.
Cost per order = 2,000 ÷ 500 = $4.00.
Return on ad spend = 40,000 ÷ 2,000 = 20×.
Revenue doubled because the rate doubled and nothing else moved. Cost per order halved because the same $2,000 is spread over twice as many orders. That only holds if the extra orders really arrive at the same ticket and the ad bill stays $2,000. The formula will not add a second campaign for you.
The same visitor count and the same $2,000, stepped by rate:
| Rate | Orders | Revenue | Cost per order | Return on ad spend |
|---|---|---|---|---|
| 1% | 100 | $8,000.00 | $20.00 | 4× |
| 1.5% | 150 | $12,000.00 | $13.33 | 6× |
| 2% | 200 | $16,000.00 | $10.00 | 8× |
| 2.5% | 250 | $20,000.00 | $8.00 | 10× |
| 3% | 300 | $24,000.00 | $6.67 | 12× |
| 4% | 400 | $32,000.00 | $5.00 | 16× |
| 5% | 500 | $40,000.00 | $4.00 | 20× |
Fig 2 · 1/7
Revenue as the rate rises
10,000 visitors, $80 ticket, $2,000 of ads
Funnel revenue
- Revenue
| Point | Revenue |
|---|---|
| 1% | $8.0k |
| 1.5% | $12k |
| 2% | $16k |
| 2.5% | $20k |
| 3% | $24k |
| 4% | $32k |
| 5% | $40k |
At 1% the month is $8,000.
At 2.5% it is $20,000. At 5% it is $40,000.
Each extra half point from 1% to 2.5% is 50 orders and $4,000. The line is straight because the ticket and the visitor count stay fixed.
Example 3. What if the ticket is $40?
Back to 2.5% and 10,000 visitors. Average order value $40. Ads still $2,000.
Orders stay 250. Revenue = 250 × 40 = $10,000.00.
Cost per order stays $8.00, because orders did not change. Return on ad spend = 10,000 ÷ 2,000 = 5×.
Halving the ticket halves revenue and halves the return. It does not change cost per order. People sometimes expect the $8 to fall too. It falls only when orders rise or the ad bill falls.
Example 4. A high ticket and a low rate
- Visitors: 2,000
- Conversion rate: 0.8%
- Average order value: $450
- Ad spend: $1,500
Orders = 2,000 × 0.008 = 16.
Revenue = 16 × 450 = $7,200.00.
Cost per order = 1,500 ÷ 16 = $93.75.
Return on ad spend = 7,200 ÷ 1,500 = 4.8×.
Sixteen orders produce less revenue than the 250-order shop in example 1 ($7,200 against $20,000), and each order costs $93.75 of ads against $8. The return is 4.8 times, against 10 times. A high ticket does not repair a thin rate on a small visitor count.
Fig 3 · 1/4
Four months of funnel revenue
Each bar is orders times the ticket
- Revenue
| Category | Revenue |
|---|---|
| 2.5% at $80 | $20k |
| 5% at $80 | $40k |
| $40 ticket | $10k |
| 16 orders | $7.2k |
The published month is $20,000. Half the ticket is $10,000.
Double the rate is $40,000. The high-ticket month is $7,200.
Example 5. Leave ad spend at zero
Visitors 10,000, rate 2.5%, ticket $80, ad spend $0.
Orders 250. Revenue $20,000.00.
Cost per order prints No ad spend. Return on ad spend prints No ad spend.
The revenue line does not need a spend. The two cost lines do. If the visits came from a newsletter you already pay for, type that cost if you want a return. Leaving it at zero does not mean the visits were free. It means this page has nothing to divide.
A zero rate is the other empty case. Five thousand visitors, 0% conversion, $80 ticket, $900 of ads. Orders are zero, so the page stops at Need visitors who convert and still shows the $900.00 spend. There is no cost per order, because the divisor is zero.
Example 6. Counting signups as orders
Same 10,000 visitors and $80 ticket. Someone pastes a 12% email signup rate into the conversion box, with $2,000 of ads.
Orders = 10,000 × 0.12 = 1,200.
Revenue = 1,200 × 80 = $96,000.00.
Cost per order = 2,000 ÷ 1,200 = $1.67.
Return on ad spend = 96,000 ÷ 2,000 = 48×.
The paid rate in example 1 was 2.5%, which is 250 orders and $20,000.00. The signup version overstates revenue by 96,000 - 20,000 = $76,000.00. The page treats whatever percent you type as a completed order. If the 12% is emails, trials, or add-to-carts, use the share that paid.
Example 7. Build the ticket, then the funnel
The average-order page starts from money you already took in.
- Revenue: $48,000
- Orders: 400
- Items sold: 1,200
Average order value = 48,000 ÷ 400 = $120.00.
Items per order = 1,200 ÷ 400 = 3.
Revenue per item = 48,000 ÷ 1,200 = $40.00.
A $120 ticket with three items is a different mix from a $120 ticket with one item. The order average does not say which.
Calculator result
Average order value
- Revenue in the period
- $48,000.00
- Orders in the period
- 400 orders
- Items sold in the period
- 1200 items
$120.00
average order value
- Items per order
- 3
- Revenue per item
- $40.00
- Orders
- 400
Feed that $120 into a smaller funnel.
- Visitors: 8,000
- Conversion rate: 1.8%
- Average order value: $120
- Ad spend: $2,400
Orders = 8,000 × 0.018 = 144.
Revenue = 144 × 120 = $17,280.00.
Cost per order = 2,400 ÷ 144 = $16.67.
Return on ad spend = 17,280 ÷ 2,400 = 7.2×.
If you only know item revenue, the $40 figure is not the funnel ticket. Using $40 instead of $120 on these 144 orders would print 144 × 40 = $5,760, a third of the checkout revenue.
Example 8. Refunds taken out of one side only
Start from the 400 orders and $48,000. Forty orders are refunded, $4,800 of tickets, and the items on them are 120.
If you drop the orders and the refunded revenue together:
- Revenue 48,000 - 4,800 = $43,200
- Orders 400 - 40 = 360
- Items 1,200 - 120 = 1,080
Average order value = 43,200 ÷ 360 = $120.00.
Items per order stay 3. Revenue per item stays $40.00. The ticket did not change. You removed whole orders that looked like the others.
The mistake is dropping the 40 orders and keeping the $48,000.
Average order value = 48,000 ÷ 360 = $133.33.
Items per order = 1,080 ÷ 360 = 3.
Revenue per item = 48,000 ÷ 1,080 = $44.44.
The ticket looks $13.33 higher because refunded money is still in the numerator. Put the same rule on both sides, or the average includes cash you gave back.
A wholesale mix moves the ticket the other way, on purpose. Revenue $36,000, 120 orders, 240 items.
Average order value = 36,000 ÷ 120 = $300.00.
Items per order = 2. Revenue per item = $150.00.
If those 120 invoices sit in the same total as the 400 retail orders, the blended ticket rises. Split the channels when you want a typical retail order.
Example 9. Months to earn back one customer
Funnel revenue is a period. Payback is one customer who pays again.
The payback calculator’s published case:
- Acquisition cost: $600
- Onboarding cost: $100
- Monthly revenue: $200
- Gross margin: 75%
- Monthly service cost: $20
Upfront = 600 + 100 = $700.00.
Monthly contribution = 200 × 0.75 - 20 = 150 - 20 = $130.00.
Payback = 700 ÷ 130 = 5.4 months.
First-year net contribution = 130 × 12 - 700 = 1,560 - 700 = $860.00.
The $8 cost per order from example 1 is not this $700. One is ads divided by orders in a month. The other is cash you spend before a named customer starts paying, plus what it costs to start them.
A smaller recurring account:
- Acquisition $240, onboarding $60, monthly revenue $49, gross margin 80%, service cost $8
Upfront = $300.00.
Monthly contribution = 49 × 0.80 - 8 = 39.20 - 8 = $31.20.
Payback = 300 ÷ 31.20 = 9.6 months.
First-year net = 31.20 × 12 - 300 = $74.40.
Payback is 9.6 months on the $300, and the first year still has $74.40 left if the $31.20 keeps arriving. Leave at month 6 and the same monthly figure gives 6 × 31.20 - 300 = -$112.80. The payback page keeps the contribution constant for as many months as the division takes.
A faster one. Acquisition $80, onboarding $0, monthly revenue $40, margin 70%, service $4.
Upfront $80.00. Monthly contribution = 40 × 0.70 - 4 = $24.00. Payback 3.3 months. First-year net = 24 × 12 - 80 = $208.00.
And a case with no payback. Acquisition $400, onboarding $50, monthly revenue $30, margin 40%, service $15.
Upfront $450.00.
Monthly contribution = 30 × 0.40 - 15 = 12 - 15 = -$3.00.
The page prints No payback. First-year net contribution = -3 × 12 - 450 = -$486.00. More months make the hole larger, because each month contributes less than zero.
Fig 4 · 1/3
Months to recover the upfront cost
Constant monthly contribution, no churn
$80 upfront
3.3 months
$700 upfront
Published case next
5.4 months
$300 upfront
$49 plan next
9.6 months
The $80 upfront case takes 3.3 months.
The published case takes 5.4 months. The $49 plan takes 9.6.
Calculator result
Customer acquisition payback
- Customer acquisition cost
- $600.00
- Customer onboarding cost
- $100.00
- Monthly customer revenue
- $200.00
- Gross margin before service cost
- 75%
- Additional monthly service cost
- $20.00
5.4 months
estimated acquisition payback
- Upfront customer cost
- $700.00
- Monthly contribution
- $130.00
- First-year net contribution
- $860.00
Example 10. Commission on the closed sales
The published commission plan:
- Eligible sales: $75,000
- Higher-rate threshold: $50,000
- Base rate: 3%
- Rate above the threshold: 5%
- Fixed bonus: $500
Base tier = 50,000 × 0.03 = $1,500.00.
Higher tier = (75,000 - 50,000) × 0.05 = $1,250.00.
Commission = 1,500 + 1,250 + 500 = $3,250.00.
Effective rate = 3,250 ÷ 75,000 = 4.3%.
The 5% rate does not apply to the first $50,000. Applying 5% to all $75,000 is 75,000 × 0.05 = $3,750, plus the $500 bonus, which is $4,250.00. That is $1,000 more than the tiered result. The $1,000 is the extra 2 points on the first $50,000: 50,000 × 0.02 = $1,000.
You can make the calculator show that flat reading by setting the threshold to $0 and both rates to 5%, with the same $500 bonus. It prints $4,250.00 and an effective rate of 5.7%, because the bonus sits on top of the 5%. The 5.7% is 4,250 ÷ 75,000, not a rate in the plan.
Fig 5 · 1/3
The $3,250 commission
Tiered plan on $75,000 of eligible sales
Base tier
$1,500
Higher tier
$1,250
Bonus
$500
The base tier is $1,500, on the first $50,000.
The higher tier is $1,250. The bonus is $500.
Under the threshold, the higher rate never turns on. Sales $18,000, threshold $50,000, base 4%, higher 8%, bonus $0.
Commission = 18,000 × 0.04 = $720.00. Higher tier $0.00. Effective rate 4%.
The funnel month from example 1, on a lower threshold so both tiers show: sales $20,000, threshold $10,000, base 3%, higher 5%, bonus $0.
Base = 10,000 × 0.03 = $300.00.
Higher = 10,000 × 0.05 = $500.00.
Commission = $800.00. Effective rate = 800 ÷ 20,000 = 4%.
A larger book: sales $140,000, threshold $80,000, base 4%, higher 7%, bonus $1,000.
Base = 80,000 × 0.04 = $3,200.00.
Higher = 60,000 × 0.07 = $4,200.00.
Commission = 3,200 + 4,200 + 1,000 = $8,400.00.
Effective rate = 8,400 ÷ 140,000 = 6%.
Fig 6 · 1/4
Commission on four sales totals
Each bar uses the rates in that example
Commission
$18k sales
$720
$20k sales
$800
$75k sales
$3,250
$140k sales
$8,400
The $20,000 funnel month earns $800. The $18,000 book earns $720.
The published $75,000 earns $3,250. The $140,000 book earns $8,400.
A month that does not cover its ads
Four hundred visitors, 1% conversion, $35 ticket, $600 of ads.
Orders = 400 × 0.01 = 4.
Revenue = 4 × 35 = $140.00.
Cost per order = 600 ÷ 4 = $150.00.
Return on ad spend = 140 ÷ 600 = 0.23×.
Each order brings $35 and the ads on it are $150. The return is under 1, so the ad bill is larger than the revenue. Contribution after the product cost would be worse. The price increase post is where that leftover is calculated. This page stops at revenue and the ad ratio.
The funnel cases side by side
| Case | Visitors | Rate | Ticket | Ads | Orders | Revenue | Cost / order | Return |
|---|---|---|---|---|---|---|---|---|
| 1. Published | 10,000 | 2.5% | $80 | $2,000 | 250 | $20,000.00 | $8.00 | 10× |
| 2. Double rate | 10,000 | 5% | $80 | $2,000 | 500 | $40,000.00 | $4.00 | 20× |
| 3. Half ticket | 10,000 | 2.5% | $40 | $2,000 | 250 | $10,000.00 | $8.00 | 5× |
| 4. High ticket | 2,000 | 0.8% | $450 | $1,500 | 16 | $7,200.00 | $93.75 | 4.8× |
| 5. No ads | 10,000 | 2.5% | $80 | $0 | 250 | $20,000.00 | No ad spend | No ad spend |
| 6. Signup rate | 10,000 | 12% | $80 | $2,000 | 1,200 | $96,000.00 | $1.67 | 48× |
| 7. $120 ticket | 8,000 | 1.8% | $120 | $2,400 | 144 | $17,280.00 | $16.67 | 7.2× |
| 8. Thin month | 400 | 1% | $35 | $600 | 4 | $140.00 | $150.00 | 0.23× |
Example 6 is the same visitors as example 1 with the wrong rate in the box. The $76,000 gap is the reason the rate has to be orders, not signups.
Open the average order value calculator when the ticket itself is the question, and the payback calculator when one customer pays every month.