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Ten thousand visits, two and a half percent buy
A shop gets 10,000 visitors in the month. 2.5 percent place an order. The average order is 80. Ads cost 2,000. Orders are 250. Revenue is 20,000.
Visitors in the period: 25% lower
Change visitors in the period to 7,500 visitors while keeping the other example values the same.
Visitors in the period: 25% higher
Change visitors in the period to 12,500 visitors while keeping the other example values the same.
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Quick answer
What does the Conversion funnel revenue calculate?
What revenue follows from visitors, conversion rate, and average order value? This calculator uses visitors in the period, conversion rate, average order value, and ad spend in the period to estimate revenue from visitors who buy immediately in your browser.
With the values currently entered, the result is $20,000.00 — funnel revenue. It also shows orders, cost per order, and return on ad spend.
How to use the Conversion funnel revenue
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Visitors in the period — entered in visitors
- Conversion rate — entered in %
- Average order value
- Ad spend in the period
Conversion funnel revenue formula
Orders = visitors × conversion rate. Revenue = orders × average order value. Cost per order = ad spend ÷ orders. Return on ad spend = revenue ÷ ad spend.
Assumptions
- SBA tells you to compare marketing and sales costs with the revenue those efforts generate. This page uses one conversion rate on the visitor count you type.
- A conversion here is a completed order. Refunds, tax, shipping, and later repeat purchases stay out unless you fold them into average order value.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Tells 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.
Manage your businessUS Small Business AdministrationScope: US small-business planning; method is generalSBA planning pages treat revenue, customers, and cash as figures you track on a period you choose. Recurring-revenue and churn ratios on this site use the amounts you type for that period.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Conversion funnel revenue example and edge cases
Funnel revenue is visitors times the share who buy, times the typical ticket. SBA tells you to compare that revenue with the marketing cost that brought the visitors in.
Example: Ten thousand visits, two and a half percent buy
A shop gets 10,000 visitors in the month. 2.5 percent place an order. The average order is 80. Ads cost 2,000. Orders are 250. Revenue is 20,000.
- Visitors in the period
- 10,000 visitors
- Conversion rate
- 2.5 %
- Average order value
- 80
- Ad spend in the period
- 2,000
Calculated result$20,000.00funnel revenue
Cost per order is 8. Return on ad spend is 10 times. If you want months to recover the cost of one customer, open the acquisition payback calculator.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the revenue first. Then check orders. A high ticket on few orders is a different shop from a low ticket on many orders.
- Cost per order and return on ad spend only appear when you type a spend. Leave spend at 0 if you only want the revenue line.
Edge cases worth checking
The conversion rate includes newsletter signups
This page treats a conversion as a completed order. If your rate counts emails or trials, revenue will look better than cash. Use the share that paid.
Half the orders refunded later
Drop those orders from the count, or lower average order value by the refunded tickets. The formula does not apply a return rate on its own.
What changes the result most
Visitors in the period
Keep visitors in the period on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Conversion rate
Test a lower and higher conversion rate. A small percentage change can move the final result more than expected.
Average order value
Use a current amount for average order value. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Visitors in the period: 25% lower
7,500 visitors$15,000.00funnel revenue
Visitors in the period: 25% higher
12,500 visitors$25,000.00funnel revenue
Conversion rate: 25% higher
3.125 %$25,000.00funnel revenue
Common mistakes
Check visitors in the period
SBA tells you to compare marketing and sales costs with the revenue those efforts generate. This page uses one conversion rate on the visitor count you type. Make sure this matches the number you enter.
Keep ad spend in the period consistent
A conversion here is a completed order. Refunds, tax, shipping, and later repeat purchases stay out unless you fold them into average order value. Use the same units and time period throughout the calculation.
Do not rely on one conversion funnel revenue scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What revenue follows from visitors, conversion rate, and average order value?
It does not replace a quote, contract, accountant, or local employment guidance.