# Specifying a goal value allows Google Analytics to calculate

What is the formula used by Google Analytics to calculate the value of goals?

What is the formula used by Google Analytics to calculate the value of goals?

Specifying a goal value in Google Analytics allows for accurate calculation of various metrics related to marketing and SEO efforts. By setting a goal value, businesses can assign a monetary worth to each conversion or desired action taken by users on their website. This enables Google Analytics to calculate the total value generated from these conversions, providing valuable insights into the effectiveness of marketing campaigns and the return on investment.

The formula used by Google Analytics to calculate the value of goals can be expressed as:

```
(goal value) = (conversion rate) x (number of conversions) x (average value per conversion)
```

To better understand this formula, let's define some key terms:

**Conversion rate**: This refers to the percentage of website visitors who complete the desired action or conversion. It is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100.**Number of conversions**: This represents the total count of successful conversions or desired actions taken by users on the website. For example, if the goal is to have users sign up for a newsletter, each successful sign-up would count as a conversion.**Average value per conversion**: This indicates the average monetary value assigned to each conversion. It can be determined by dividing the total value generated from conversions by the number of conversions.

By specifying a goal value and understanding the formula used by Google Analytics, businesses can gain valuable insights into the financial impact of their marketing and SEO efforts. This information can help them make data-driven decisions to optimize their strategies, allocate resources effectively, and maximize their return on investment.

Specifying a goal value allows businesses to assign a monetary worth to each conversion or desired action taken by users on their website. This enables Google Analytics to calculate the total value generated from these conversions, providing insights into the effectiveness of marketing campaigns and return on investment.

The value of goals in Google Analytics is calculated using the formula: (goal value) = (conversion rate) x (number of conversions) x (average value per conversion). This formula takes into account the percentage of website visitors who complete the desired action, the total count of successful conversions, and the average monetary value assigned to each conversion.

Conversion rate refers to the percentage of website visitors who complete the desired action or conversion. It is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100. A higher conversion rate indicates a higher percentage of visitors taking the desired action.

The number of conversions represents the total count of successful conversions or desired actions taken by users on the website. For example, if the goal is to have users sign up for a newsletter, each successful sign-up would count as a conversion. Tracking the number of conversions helps measure the effectiveness of marketing and SEO efforts.

The average value per conversion is determined by dividing the total value generated from conversions by the number of conversions. This metric represents the average monetary value assigned to each conversion and helps businesses understand the financial impact of their marketing and SEO efforts.

Specifying a goal value in Google Analytics allows businesses to gain valuable insights into the financial impact of their marketing and SEO efforts. This information helps them make data-driven decisions to optimize their strategies, allocate resources effectively, and maximize their return on investment.