How to calculate conversion rate
Conversion rate is the percentage that moves from one defined point to the next. It applies to any funnel step: visitor to lead, lead to opportunity, opportunity to win. Its usefulness lives entirely in defining the two points clearly and measuring a consistent cohort.
Short answer
Calculate conversion rate by dividing the number that completed the desired action by the total number that entered, then multiplying by 100. For example, 50 opportunities from 200 leads is a 25 percent conversion rate. Always define the two points precisely, use a fixed cohort, and segment by source to make the number actionable.
Step by step
Define the two points
State exactly what you are measuring, such as lead-to-opportunity, and make sure everyone uses the same definition.
Apply the formula
Divide the number that converted by the number that entered and multiply by 100.
- Conversion rate = (converted / total entered) x 100
- Match numerator and denominator to one cohort
- Use a fixed time window
Use a consistent cohort and window
Measure the same group over the same period. A moving total or mismatched windows produces a meaningless rate.
Segment for insight
Break it down by source, segment, and rep. A blended rate hides the channels and steps that need work.
Compare to your own trend
Judge the number against your prior periods, not generic benchmarks that vary wildly by context.
How Ardovo helps
Ardovo computes conversion at every funnel step and by source automatically, so Rook can surface the weakest transition and its likely cause without a spreadsheet. You get an actionable rate, not a vanity percentage.
Frequently asked questions
What is the difference between conversion rate and win rate?
Win rate is a specific conversion rate: closed-won divided by all closed deals. Conversion rate is the general term for any stage-to-stage transition. Win rate is the final one, from qualified opportunity to customer.
Why segment conversion rate?
Because a blended number hides wide variation. One source may convert at 25 percent and another at 2 percent. Segmenting by source, segment, and stage tells you where to invest and where a real problem lives.
What is a good conversion rate?
It depends entirely on the step, source, and market, so compare to your own history rather than a universal figure. A referral converts far higher than a cold click. The trend and the by-segment breakdown are what matter.