What You Need to Know
For websites, ROI answers the question: "Is this website making me more money than it costs?" Calculate it by taking revenue generated by the website, subtracting the website cost, dividing by the website cost, and multiplying by 100. If your website costs $2,000 annually and generates $10,000 in new business, your ROI is 400%. For service businesses, track leads from your website, estimate your close rate and average job value, and calculate the revenue attributed to your online presence. A good business website should deliver 300-500% ROI within the first year.
Examples
A tradie spends $99/month ($1,188/year) on a website and gets 3 jobs/month worth $1,500 each = 3,528% ROI
A dental practice invests $5,000 in a website redesign and gains 10 new patients worth $2,000 lifetime value = 300% ROI
A local retailer spends $150/month on their site and online sales increase by $2,000/month = 1,011% ROI
Common Questions
What's a good ROI for a business website?
Aim for 300%+ ROI in year one, meaning every dollar spent on your website generates at least $3 in revenue. Many successful small business websites achieve 500-1000% ROI through consistent lead generation.
How do I calculate website ROI?
Track leads from your website, estimate how many convert to sales, multiply by average sale value. Subtract your total website costs (build + ongoing). Divide profit by cost, multiply by 100 for percentage. Most website platforms have analytics to track this.
Related Terms
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