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Website ROI Calculator
What is website ROI?
Website ROI measures how much revenue your website generates compared to the cost of developing and maintaining it. Tracking this metric can help you evaluate your website's performance with respect to its target revenue and formulate the required strategies to meet your goals.
Relevant channels: E-commerce websites, subscription-based websites, advertising-driven websites, SaaS platforms
How to use this website ROI calculator
To calculate your website ROI, enter the following details:
E-commerce Sales: The total revenue generated from online sales through the website.
Value of Leads Generated: The estimated value of leads obtained via your website.
Ad Revenue: The income generated from advertisements displayed on the website.
Subscription Revenue: The income from subscription-based services or memberships.
Development Costs: The cost of developing and building the website.
Hosting and Maintenance Costs: Ongoing costs related to hosting, server maintenance, and website upkeep.
Marketing Costs: Total expenses spent on promoting the website (e.g., ads, SEO, content marketing).
Operational Costs: Any other associated costs related to website operation, such as staff, software, or tools.
Once you have filled out the relevant fields, the calculator will generate your website ROI as a percentage.
Website ROI formula
Website ROI = (Revenue Generated - Website Costs) / Website Costs x 100
Here, the revenue generated and website costs are calculated as follows:
Revenue Generated = E-commerce Sales + Value of Leads Generated + Ad Revenue + Subscription Revenue
Website Costs = Development Costs + Hosting and Maintenance Costs + Marketing Costs + Operational Costs
Understanding the website ROI result
The ideal website ROI will depend on numerous factors such as the kind of website, industry, your goals, etc.
- A high website ROI indicates that your website is performing well and generating a relatively high profit compared to your investment.
- A low website ROI signals that you may need to adjust your marketing strategy, user experience, or optimization. If the value is negative, it indicates a loss, which requires immediate reworking of your strategies.
When to calculate website ROI
After a major redesign or relaunch of your website
Quarterly, to evaluate performance against marketing spend
Annually, to assess long-term ROI and website effectiveness
Before deciding to invest in new marketing campaigns or tools for the website
How to calculate website ROI (with example)
Imagine that you have the following data from your website:
E-commerce Sales: $150,000
Value of Leads Generated: $50,000
Ad Revenue: $30,000
Subscription Revenue: $20,000
Development Costs: $100,000
Hosting and Maintenance Costs: $10,000
Marketing Costs: $15,000
Operational Costs: $5,000
You can calculate your website ROI as follows:
Website ROI = (Revenue Generated - Website Costs) / Website Costs x 100
Revenue Generated = 150,000 + 50,000 + 30,000 + 20,000 = $250,000
Website Costs = 100,000 + 10,000 + 15,000 + 5,000 = $130,000
Website ROI = ((250,000 - 130,000) / 130,000) x 100 = 142.86%
This means your website generates a 142.86% return on your investment, indicating a highly profitable site.
How to improve your website ROI
Optimize the website for SEO to drive more organic traffic and reduce paid ad dependency
Invest in user experience (UX) design to improve conversion rates and sales
Increase lead generation by offering free trials, downloadable content, or exclusive deals
Utilize targeted advertising to attract high-intent visitors to the site
Ensure your website is mobile-optimized to capture a broader audience
Regularly update your content and products to keep users engaged and coming back
Monitor website performance metrics like bounce rate, page speed, and traffic sources to make data-driven decisions
Streamline operational costs through automation or outsourcing where possible
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