Engagement rate is the percentage of the audience who liked or commented on your content. In the case of Twitter, it is the number of retweets and likes your content received. It gives you insight into how active your audience is and what’s working best for you on your social media channels. 

Engagement rate of a single Instagram post is calculated as the sum of likes and comments divided by the number of followers you had at the time of the post publication.

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Engagement rate of a single tweet is calculated as the sum of all retweets and likes divided by the number of followers you had at the time of the tweet publication.

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It is also useful for benchmarking your own performance against your competitors.