You invested thousands of dollars in your website. Maybe it was $5,000. Maybe it was $15,000. Maybe more.
And now you're wondering: Is it actually working? Am I getting my money's worth?
Most small business owners have no idea how to answer that question. They know their website exists, they know people visit it, but they can't tell you if it's generating enough revenue to justify the investment.
This isn't just about feeling good about your decision. It's about understanding whether your website is a profitable business asset or an expensive digital brochure that's costing you money.
In this guide, we'll show you exactly how to calculate your website ROI using simple formulas that work for service businesses, e-commerce stores, and local businesses. You'll learn what metrics to track, how to set up basic tracking, and what to do if your ROI isn't where it should be.
By the end, you'll have a clear, numerical answer to the question: Is my website paying for itself?
What Is Website ROI and Why It Matters
ROI stands for "Return on Investment." In simple terms, it's the profit you make from your website compared to what you spent on it.
The basic question ROI answers: For every dollar you put into your website, how many dollars are you getting back?
Why this matters for your business:
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Budget decisions: Should you invest in a redesign? Add new features? Spend more on SEO? Without knowing your current ROI, you're guessing.
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Marketing allocation: Is your website generating better ROI than paid ads, direct mail, or other marketing channels? You need to know where to focus resources.
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Business planning: If your website ROI is strong, it can justify expansion. If it's weak, you need to fix it before investing more.
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Accountability: Whether you hired an agency or built it yourself, measuring ROI tells you if the website is performing as it should.
The reality check: Most small business websites don't track ROI at all. According to research, only 23% of small business owners can confidently state their website's ROI. That means 77% are flying blind.
Let's fix that.
The Website ROI Formula Explained
Here's the fundamental formula for calculating website ROI:
ROI = (Website Revenue - Website Cost) / Website Cost × 100
Example:
- Your website generates $50,000 in revenue per year
- Your website cost $10,000 to build
- ROI = ($50,000 - $10,000) / $10,000 × 100 = 400% ROI
For every dollar you spent, you got back $5 ($1 original investment + $4 profit). That's excellent.
But here's where it gets tricky: How do you calculate "website revenue" and "website cost"?
Let's break down both sides of this equation.
Identifying Your Website Costs
Initial costs:
- Website design and development
- Content creation (copywriting, photography, video)
- Stock photos or custom graphics
- Initial SEO setup
- Any integrations or plugins
Ongoing costs (annual):
- Hosting and domain registration
- Maintenance and updates
- Security and backups
- Content updates
- SEO services
- Any subscription tools (forms, analytics, etc.)
Example calculation:
Initial investment: $8,000
Annual ongoing costs: $1,200 (hosting, maintenance, tools)
Year 1 total cost: $9,200
Year 2 total cost: $1,200
Year 3 total cost: $1,200
Pro tip: To calculate ROI for Year 1, use the full initial investment. For subsequent years, use only the ongoing annual costs. This gives you both a "total investment ROI" and an "annual operating ROI."
Measuring Website-Generated Revenue
This is the hard part. How do you know which sales came from your website versus other sources?
Direct attribution (easy to track):
- Online purchases (e-commerce)
- Form submissions that convert to sales
- Online bookings or appointments
- Phone calls tracked to the website
Indirect attribution (harder to track):
- People who visited the website, then called or visited in person
- Referrals influenced by your website credibility
- Customers who researched you online before buying
The practical approach:
For most small businesses, use direct attribution for conservative estimates and surveys for indirect attribution.
Example for a service business:
- 50 form submissions from website per year
- 40% convert to customers (20 customers)
- Average project value: $3,000
- Website revenue = 20 × $3,000 = $60,000
Example for e-commerce:
- Use Google Analytics or your store platform
- Total online sales = website revenue
- If you also have physical locations, segment by traffic source
Example for local business:
- Track phone calls from website (using call tracking)
- Track online appointment bookings
- Survey new customers: "How did you find us?"
- Estimate % that discovered you via website
Calculating Your ROI Percentage
Once you have both numbers, plug them into the formula:
ROI = (Website Revenue - Website Cost) / Website Cost × 100
Interpreting your results:
- Negative ROI: Your website is costing more than it's making. This needs immediate attention.
- 0-50% ROI: Your website is generating some return, but underperforming. Most marketing investments should aim for better.
- 50-200% ROI: Solid performance. Your website is paying for itself and contributing profit.
- 200-500% ROI: Excellent. Your website is a strong business asset.
- 500%+ ROI: Outstanding. Your website is a core growth driver.
ROI Calculation by Business Type
The formula stays the same, but the tracking method varies by business model.
Service Business ROI (Lead Value Method)
Best for: Consultants, agencies, contractors, professional services
What to track:
- Form submissions from website
- Email inquiries with website source
- Phone calls attributed to website (via call tracking)
Example calculation:
Costs:
- Website build: $7,500
- Annual maintenance: $1,500
- Year 1 total: $9,000
Revenue:
- 60 contact form submissions
- 25% convert to clients (15 clients)
- Average project value: $5,000
- Website revenue: 15 × $5,000 = $75,000
ROI:
($75,000 - $9,000) / $9,000 × 100 = 733% ROI
Reality check: If your service business website has a well-optimized contact form and clear calls to action, a 500-700% ROI is achievable within the first year.
E-commerce ROI (Direct Sales Method)
Best for: Online stores, product-based businesses
What to track:
- Total online revenue (easiest to track)
- Revenue by traffic source (organic, direct, referral)
- Customer acquisition cost by channel
Example calculation:
Costs:
- E-commerce site build: $12,000
- Annual costs (hosting, plugins, maintenance): $2,400
- Year 1 total: $14,400
Revenue:
- Total online sales: $120,000
- Less: Product costs (60% = $72,000)
- Less: Shipping, payment processing (10% = $12,000)
- Website-attributed gross profit: $36,000
ROI:
($36,000 - $14,400) / $14,400 × 100 = 150% ROI
Important note: For e-commerce, use gross profit (revenue minus product costs), not total revenue. Otherwise, your ROI looks artificially high.
Local Business ROI (Phone Call + Foot Traffic)
Best for: Restaurants, retail stores, medical practices, local services
What to track:
- Phone calls from website (call tracking number)
- Online appointment bookings
- Customer surveys: "How did you hear about us?"
- Google Business Profile interactions (calls, directions)
Example calculation:
Costs:
- Website redesign: $6,000
- Annual costs: $800
- Year 1 total: $6,800
Revenue attribution:
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120 phone calls from website (tracked number)
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30% convert to customers (36 customers)
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Average transaction value: $250
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Phone call revenue: 36 × $250 = $9,000
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40 online bookings
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80% show up (32 customers)
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Average transaction value: $250
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Booking revenue: 32 × $250 = $8,000
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Survey indicates 25% of new walk-ins found you online (estimated 60 customers)
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Walk-in revenue: 60 × $250 = $15,000
Total website-attributed revenue: $32,000
ROI:
($32,000 - $6,800) / $6,800 × 100 = 371% ROI
What Metrics to Track for ROI
To calculate website ROI accurately, you need to track specific metrics consistently.
Conversion Rate
What it is: The percentage of website visitors who take a desired action (form submission, purchase, call, etc.)
How to calculate:
Conversion Rate = (Conversions / Total Visitors) × 100
Example: 5,000 visitors, 50 form submissions = 1% conversion rate
Why it matters: If you improve your conversion rate from 1% to 2%, you double your website revenue without increasing traffic costs.
Lead Value
What it is: The average revenue generated by each lead from your website
How to calculate:
Lead Value = Total Revenue from Website Leads / Number of Leads
Example: 100 leads, 25 converted to customers, $50,000 total revenue = $500 per lead (even though only 25% convert)
Why it matters: Knowing lead value helps you calculate customer acquisition cost and justify marketing spend.
For context on website costs, see our guide on website pricing in 2026.
Customer Acquisition Cost
What it is: How much you spend to acquire each customer through your website
How to calculate:
CAC = (Website Costs + Marketing Costs) / Number of Customers Acquired
Example:
- Website cost: $10,000 (Year 1)
- Marketing (SEO, ads): $5,000
- Customers acquired: 50
- CAC = $15,000 / 50 = $300 per customer
Why it matters: If your customer acquisition cost is higher than your customer lifetime value, your business model doesn't work.
Customer Lifetime Value
What it is: The total revenue you expect from a customer over their entire relationship with your business
How to calculate:
CLV = Average Purchase Value × Number of Repeat Purchases × Average Customer Lifespan
Example:
- Average purchase: $1,000
- Repeat purchases per year: 2
- Customer stays with you: 3 years
- CLV = $1,000 × 2 × 3 = $6,000
Why it matters: If CLV is $6,000 and CAC is $300, you have a healthy 20:1 ratio. If CLV is $500 and CAC is $300, you're in trouble.
Setting Up Tracking (The Basics)
You can't calculate ROI without tracking systems in place. Here's the minimum you need:
1. Google Analytics (Free)
- Install GA4 on your website
- Set up conversion goals (form submissions, button clicks, etc.)
- Track traffic sources
- Monitor user behavior
Learn what to focus on in our article on Google Analytics metrics for small businesses.
2. Call Tracking
- Use a unique phone number on your website (different from other marketing materials)
- Services like CallRail, CallTrackingMetrics (~$30-$100/month)
- This tells you exactly how many calls came from your site
3. Form Tracking
- Most website platforms track form submissions automatically
- Connect forms to your CRM or spreadsheet
- Track which submissions turn into customers
4. E-commerce Platform Analytics
- Shopify, WooCommerce, etc. have built-in analytics
- Track revenue by traffic source
- Monitor conversion rate over time
5. Customer Surveys
- Simply ask new customers: "How did you hear about us?"
- Include "Website" as an option
- Helps capture indirect attribution
The minimum viable setup: Even if you do nothing else, install Google Analytics and track form submissions. That alone gives you enough data to calculate a basic ROI.
What's a Good Website ROI?
The short answer: 200% or higher is solid for most small businesses.
But context matters:
Industry benchmarks:
- Service businesses: 300-700% ROI is common if the site is optimized
- E-commerce: 150-300% ROI (lower margins due to product costs)
- Local businesses: 200-400% ROI (mix of direct and indirect attribution)
- Professional services (law, medical, etc.): 400-1,000%+ ROI possible due to high transaction values
Timeline considerations:
- Year 1: ROI may be lower due to upfront costs
- Year 2-3: ROI should improve significantly as ongoing costs are much lower
- Long-term: A well-built website should deliver 500%+ ROI over 3-5 years
Comparison to other marketing:
For perspective, typical marketing ROI by channel:
- Email marketing: 3,600% ROI (incredibly high, but requires building a list)
- SEO: 500-1,000% ROI long-term
- Social media marketing: 95% ROI average
- Direct mail: 29% ROI average
- Paid search ads: 200% ROI average
A good website beats most marketing channels in the long run because it's a one-time investment that generates returns year after year.
How to Improve Your Website ROI
If your website ROI is lower than expected, here's what to fix:
1. Improve Your Conversion Rate
Even small improvements make a big difference:
- Clearer calls to action
- Better contact forms (see our guide on contact form best practices)
- Faster page load speed
- Trust signals (testimonials, reviews, credentials)
- Mobile optimization
Impact: Doubling your conversion rate from 1% to 2% doubles your revenue with the same traffic.
2. Drive More Qualified Traffic
More visitors = more opportunities:
- Invest in local SEO (see our Local SEO Guide)
- Content marketing (blog posts that attract your ideal customers)
- Google Business Profile optimization
- Paid advertising (if ROI justifies it)
Impact: 2x traffic with same conversion rate = 2x revenue
3. Increase Average Transaction Value
Get more revenue per customer:
- Upsells and cross-sells on product pages
- Service packages instead of single services
- Clear value communication
- Premium options prominently displayed
Impact: 20% increase in average order value = 20% more revenue with same traffic
4. Improve Lead Quality
Better leads = higher conversion rate:
- Clearer messaging about who you serve
- Qualifying questions on forms
- Case studies and examples that attract ideal clients
- Pricing transparency to filter out bad fits
5. Reduce Bounce Rate
Keep visitors engaged longer:
- Faster page load speed (under 3 seconds)
- Clear, scannable content
- Strong value proposition above the fold
- Internal linking to related content
Not sure if your website needs work? Check out our article on signs your website needs a redesign.
Website ROI Calculation Worksheet
Use this simple worksheet to calculate your website ROI:
Step 1: Calculate Total Website Costs
Initial build cost: $________
+ Annual hosting/maintenance: $________
+ Marketing expenses: $________
= Total Cost: $________
Step 2: Calculate Website Revenue
Method A: For service businesses
Form submissions per year: ________
× Conversion rate to customers: ________%
= Number of customers: ________
× Average project value: $________
= Website Revenue: $________
Method B: For e-commerce
Total online sales: $________
- Product costs: $________
- Processing/shipping fees: $________
= Website Gross Profit: $________
Method C: For local businesses
Phone calls from website: ________
× Conversion rate: ________%
× Average transaction: $________
= Phone revenue: $________
+ Online bookings: ________
× Show rate: ________%
× Average transaction: $________
= Booking revenue: $________
+ Estimated walk-ins from website: ________
× Average transaction: $________
= Walk-in revenue: $________
= Total Website Revenue: $________
Step 3: Calculate ROI
(Website Revenue - Total Cost) / Total Cost × 100 = ________% ROI
Download a printable version: [Note: Lead magnet to be added in Phase 2 based on article performance]
Make Your Website a Profitable Asset
Here's the bottom line: if you can't measure your website ROI, you can't improve it.
Most small business owners avoid this exercise because they're worried about what they'll find. But here's the truth: knowing your ROI—even if it's low—puts you in control.
If your website has a 50% ROI when it should have 300%, you now have a clear target for improvement. You can test changes, measure results, and make data-driven decisions instead of guessing.
And if your website has a strong ROI? Congratulations—you have justification to invest more in what's working.
Take 30 minutes this week to run the numbers. Use the worksheet above. Track your metrics. You might be surprised by what you discover.
Ready to Improve Your Website ROI?
At MooseBase, we build websites specifically designed to generate measurable ROI for small businesses. Every site includes conversion-focused design, basic analytics setup, and clear tracking systems so you know exactly what's working.
We've helped dozens of business owners turn their websites from cost centers into profit drivers. Whether you need a new site built right or want to optimize what you have, we're happy to help.
Next Steps:
- Learn why your site might not be generating leads in our article on why your website isn't generating leads
- Understand what to track in Google Analytics for small businesses
- Read about signs your website needs a redesign
- Calculate how much a bad website might be costing you in the hidden costs of a bad website
- Schedule a free consultation to discuss improving your website ROI
Your website should be making you money. Let's make sure it is.