How do you calculate a marketing funnel?
Divide each stage by the one before it for the step conversion rate, and divide ad spend by each stage for its cost. $4,500 for 30 sales is $150 per sale. To plan, run it backwards: target ÷ each rate gives the impressions you need, and impressions × CPM ÷ 1,000 gives the budget.
Why the weakest step matters more than CPM
Every step multiplies. Doubling a 5% lead rate to 10% halves the budget needed for the same sales, exactly as halving CPM would, and it’s often easier to do: a clearer landing page or a shorter form. Use the conversion rate, CTR and CPA calculators to work on single steps.
From funnel to media plan
Once you know the budget, split it across channels and weeks in the media plan builder, then keep it on track with the pacing calculator.
How to analyse a marketing funnel
- Enter each stage. Type the count at each stage for the same date range: impressions, clicks, leads, sales. Rename or add stages to match your funnel.
- Add the spend. Enter the ad spend for the period, and the average order value for revenue and ROAS.
- Find the weakest step. Read the step rates and cost per stage; the weakest step after the click is highlighted.
- Plan to a target. Switch to Plan to a target, enter the sales you want, your CPM and rates, and read off the budget needed.
Frequently asked questions
How do you calculate funnel conversion rates?
Divide each stage by the stage before it. 3,000 clicks from 200,000 impressions is a 1.5% click-through rate; 150 leads from 3,000 clicks is a 5% lead rate; 30 sales from 150 leads is a 20% close rate.
How much ad budget do I need for a sales target?
Work backwards: divide the target by each conversion rate in turn to get the impressions needed, then multiply by CPM ÷ 1,000. 50 sales at a 20% close rate, 5% lead rate and 1.5% CTR needs 333,334 impressions; at a $12 CPM that is about $4,000.
What is cost per stage?
Total ad spend divided by the number of people who reached that stage: cost per click, cost per lead, cost per sale. The further down the funnel, the higher the cost.
Which funnel step should I fix first?
Usually the step with the lowest conversion rate after the click, because a rate change there multiplies through every stage below it. The calculator highlights it.