Minimum Detectable Effect (MDE) Explained for A/B Testing
What is MDE, how to choose the right one, and why it's the most important parameter in your A/B test setup. Practical guide with examples and trade-off analysis.
The minimum detectable effect (MDE) is the smallest improvement your A/B test is designed to reliably detect. Get it wrong and you'll either run tests for months or miss real wins. This guide explains how to choose the right MDE for your situation.
What Is MDE?
MDE answers the question: "How small of a change do I care about detecting?"
It's expressed as a relative percentage change from your baseline. If your conversion rate is 4% and your MDE is 10%, you're designing your test to detect a shift from 4.0% to 4.4% (or from 4.0% to 3.6% on the downside).
The key word is designed. A test with a 10% MDE can detect a 30% improvement — it just also has the statistical power to catch changes as small as 10%. A test with a 30% MDE would miss that same 10% improvement entirely.
Why MDE Matters
MDE is the single biggest lever on your test duration:
| MDE | Sample Size (per variation) | Duration at 1k/day |
|---|---|---|
| 5% | ~63,000 | 126 days |
| 10% | ~16,000 | 32 days |
| 15% | ~7,200 | 15 days |
| 20% | ~4,100 | 9 days |
| 30% | ~1,900 | 4 days* |
Based on 3% baseline, 95% significance, 80% power. The 4-day test would still need to run 7+ days for business cycle coverage.
Halving your MDE roughly quadruples your required sample size. This is because sample size scales with the inverse square of the effect size.
Relative vs. Absolute MDE
This is the most common source of confusion:
- Relative MDE (10%): A 10% relative improvement on a 5% baseline = detecting a shift from 5.0% to 5.5%
- Absolute MDE (0.5pp): A 0.5 percentage point improvement = detecting a shift from 5.0% to 5.5%
These describe the same thing, but different tools use different conventions. Always check which one your tool expects. Most modern A/B test calculators use relative MDE.
How to Choose Your MDE
The business value approach
Calculate the revenue impact of different effect sizes and find the threshold where the improvement pays for the cost of running the test.
Example: You're testing a checkout page.
- 10,000 daily visitors, 3% conversion rate, $50 AOV
- Current daily revenue: $15,000
| Relative MDE | New Rate | Extra Revenue/Month | Worth Detecting? |
|---|---|---|---|
| 5% | 3.15% | $2,250 | Yes, significant revenue |
| 10% | 3.30% | $4,500 | Yes, definitely |
| 20% | 3.60% | $9,000 | Yes, big win |
| 50% | 4.50% | $22,500 | Unlikely but transformative |
If a 5% improvement would add $2,250/month ($27k/year), it's worth the longer test. If you're a smaller business where 5% means $50/month, you probably only care about 20%+ effects.
The practical approach
Match your MDE to your experimentation capacity:
- High traffic (50k+/day): Use 5-10% MDE. You can afford sensitivity.
- Medium traffic (5k-50k/day): Use 10-20% MDE. The sweet spot.
- Low traffic (under 5k/day): Use 20-30% MDE. Focus on big swings.
The historical approach
Look at your past A/B test results:
- If most winning tests show 15-25% lifts, a 10% MDE captures them comfortably
- If most winning tests show 5-10% lifts, you need a 5% MDE to catch them
- If you've never measured past effect sizes, start with 15% MDE and adjust
The MDE Trade-Off
Choosing an MDE is a trade-off between sensitivity and speed:
Small MDE (5-10%)
- Catches subtle improvements
- Requires large sample sizes (long tests)
- Best for high-traffic sites and high-stakes pages
- Risk: tests take so long that the business context changes
Large MDE (20-30%)
- Only catches big improvements
- Requires small sample sizes (fast tests)
- Best for low-traffic sites and early-stage experiments
- Risk: you miss real but modest improvements, leading to the false conclusion that "nothing works"
Medium MDE (10-20%)
- Balanced sensitivity and speed
- Where most teams should operate
- Tests typically run 2-4 weeks
Common Mistakes
Setting MDE too low for your traffic
If a 5% MDE means a 6-month test, the test is impractical. The business context will change, code will be refactored, and the results won't be actionable. Better to use a 15% MDE and run 3 tests in that time.
Confusing MDE with expected effect
MDE is not your prediction of the outcome. It's the minimum you want to be able to detect. Your actual effect might be larger (great — the test will detect it even faster) or smaller (the test won't detect it, and that's by design — you decided effects that small aren't worth shipping).
Using the same MDE for all tests
Different tests warrant different sensitivity levels:
- Pricing page: Low MDE (5-10%). Revenue impact per visitor is high.
- Blog post layout: High MDE (20-30%). Revenue impact per visitor is low.
- Checkout flow: Low MDE (10-15%). Every percentage point matters.
- Homepage hero: Medium MDE (15-20%). Important but often hard to move.
Ignoring MDE when interpreting results
If your test ends with a measured effect of +3% but your MDE was 15%, the test was not designed to detect a 3% effect. The result is inconclusive — not negative. You can't conclude the change doesn't work; you can only conclude it doesn't produce an effect larger than 15%.
Calculate Your MDE
Use the AB Test Plan calculator to see how different MDE choices affect your test duration and projected impact. Plug in your baseline rate and daily traffic, then adjust the MDE slider to find the right balance for your situation.