First transaction rate
Activation metric. Do new users reach first value?
What is first transaction rate?
First transaction rate is the share of new fintech users who complete their first deposit, payment, investment or trade within a set number of days.
Funded account: an account with a first deposit or balance, often used as the fintech definition of a customer.
How to calculate First transaction rate
First transaction rate (day n) = Users with a first transaction by day n ÷ Users in the cohort × 100- Users with a first transaction by day n
- cohort users whose first transaction happened within n days
- Users in the cohort
- the starting group, usually KYC-verified users or installs from one week
Where definitions differ
| Variant | Formula | When to use it |
|---|---|---|
| From KYC-verified users | First transactions by day n ÷ Verified users × 100 | Isolates the step after verification. |
| From installs | First transactions by day n ÷ Installs × 100 | Shows the whole funnel in one number. |
| Cumulative by day | Day 1, day 3 and day 7 rates from one cohort | Each rate includes the earlier days, so it can only rise. |
First transaction rate calculator
Example inputs: change them to your own numbers. The examples only make the calculator show a worked answer; they are not benchmarks or targets. Runs in your browser; nothing you type is sent anywhere.
- Day 1 deposit conversion
- 25%
- Day 3 deposit conversion
- 40%
- Day 7 deposit conversion
- 50%
How do you measure deposit conversion on day 1, day 3 and day 7?
Take one cohort, for example users verified in a given week, and count how many made a first deposit by day 1, day 3 and day 7 after verification. Each rate is cumulative, so it can only rise.
How First transaction rate differs by vertical
| EdTech | The equivalent is the first paid enrolment. |
|---|---|
| Fintech | The core activation metric for payments, lending, broking and savings apps. |
| OTT and streaming | The equivalent is the first paid subscription. |
| Gaming | The equivalent is the first in-app purchase. |
Common mistakes
- Mixing cohorts of different ages, so recent users look worse simply because they have had less time.
- Counting promotional or reversed transactions as a first transaction.
Questions
What is a first transaction rate?
The share of new users who make their first deposit, payment or trade within a set number of days. It shows how many verified users actually start using a fintech product.
Why measure day 1, day 3 and day 7 separately?
The shape matters: if most deposits happen on day 1, reminders after day 3 add little; if the curve keeps rising to day 7, follow-up nudges are worth testing.
Should the base be installs or KYC-verified users?
Use verified users to judge the step after KYC, and installs to judge a campaign end to end. Label which base you used.
Do I need an MMP to measure these metrics?
Not for all of them. Engagement and monetisation metrics come from product analytics and billing data, while metrics split by ad channel, such as CPI, ROAS or retention by source, need installs attributed to campaigns.
Are the calculator's example inputs benchmarks?
No. The example inputs only make the calculator show a worked answer when the page loads; they are not typical, good or target values. Replace them with your own numbers.
Does the calculator send my numbers anywhere?
No. It runs entirely in your browser, and nothing you type is stored or sent anywhere.