Free tool
Before you spend a quarter on a redesign or an A/B testing program, put a number on it. Enter your traffic, current conversion rate, and order value, choose a lift, and see the extra conversions and revenue it adds per month and per year.
extra revenue per year
50,000 visitors a month at 2% gives 1,000 conversions. At 2.5% you'd get 1,250.
| Lift | New rate | Extra conversions / month | Extra per year |
|---|---|---|---|
| +0.1 pts | 2.1% | 50 | $48,000 |
| +0.25 pts | 2.25% | 125 | $120,000 |
| +0.5 pts | 2.5% | 250 | $240,000 |
| +1 pts | 3% | 500 | $480,000 |
| +2 pts | 4% | 1,000 | $960,000 |
The formula
The calculation is simple, which is why it's worth doing before any optimization project:
Multiply by your gross margin to get profit instead of revenue. With the defaults (50,000 visitors, 2.0% conversion, $80 per order), a 0.5-point lift to 2.5% adds 250 orders a month: $20,000 a month, or $240,000 a year.
Avoid the classic mix-up
“We lifted conversion by 10%” can mean two very different things. Going from 2.0% to 2.2% is a 10% relative lift but only 0.2 percentage points. Going from 2.0% to 12.0% would be 10 percentage points, a 500% relative lift that no landing page tweak delivers.
A/B testing tools usually report relative lift, and finance teams usually think in points. Pick the one that matches the number you were given, and check the “Relative lift” figure in the results to make sure the change is realistic. Most single A/B test wins are in the 2–10% relative range.
To find out whether a measured lift is real or just noise, run the result through the A/B test significance calculator.
FAQ
It depends on what you count. Ecommerce stores often convert 1–3% of sessions into orders, while a SaaS landing page asking only for an email can convert far more. Compare yourself with your own history rather than an industry average, because traffic mix changes everything.
Use whichever your conversion rate was calculated from. If your rate is orders ÷ sessions, enter monthly sessions. Mixing them (users with a sessions-based rate) overstates or understates the result.
It assumes traffic and order value stay flat and that the lift holds for a full year. Seasonality, novelty effects, and changes in traffic mix all move the real number, so treat it as the size of the opportunity rather than a forecast.
Start with the biggest drop-off in your funnel. The funnel drop-off calculator shows where most people leave, and session replays of those visits usually show why.
Related
PulsePanda shows where visitors drop off, lets you watch why in session replays, and ties every change back to revenue.
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