Do you have a website that makes money? Then you may be wondering how much is my website worth? The fact is, websites can be extremely valuable, and if you have the right kind of website, selling it could net you a lot of money.
Table of Contents
- Introduction
- The “how much is my website worth” calculator
- How to use the calculator
- So, how much is my website worth?
- Key points
Introduction
Websites are an investment, a lot like stocks and crypto. That means they have value, and you can potentially sell them for a profit.
But how do you know how much your website is worth? Website valuation is a complicated topic, which I cover in several articles on the site. But to just get an idea of how much your website is worth, you can use my calculation tool. And this article explains how to do it.
The “how much is my website worth” calculator
For my own websites, I created a set of website valuation calculators. There is an basic “how much is my website worth” overview calculator, and then several more in-depth calculators for different aspects of valuation.
For those website owners who want to get a sense of how much their websites are worth, I recommend using the overview calculator, which is included in my Website Investing Beginner’s kit.
You can download the kit here:
How to use the calculator
To use the “how much is my website worth” calculator, download the XLSX file and open it in Microsoft Excel. It will ask you whether you want to enable editing. You will want to enable editing, so that you can enter numbers into the fields and allow the worksheet to perform calculations.
You will see screen that looks like this:
The calculator requires you to enter some information about your website’s revenue and expenses. These are explained below:
Revenue
Revenue from ad networks
In this section, enter the amount you earn per month from any ad networks your site uses. There are line items for common ad networks, such as Adsense and Ezoic. For other ad networks, such as Newor or Content.ad, you can enter the earnings on the Other ad networks line.
Revenue from affiliate programs
Enter how much you earn from different affiliate programs in this section. Commonly used affiliate programs such as Amazon and Shareasale are listed on the sheet. If you use other affiliate programs, enter them on the last line of the section.
Revenue from e-commerce
In this section enter the amount you earn monthly from e-commerce. This section is broken down by payment processors. If you use common payment processors, such as PayPal or Stripe, enter the revenue you earn from these providers. If you use another provider, enter the revenue on the bottom line of the section.
Expenses
Website
These are expenses related to technical operation of the website. Although domain and software costs may not be billed monthly, they should be entered as monthly costs in the worksheet.
Wages
In this section, enter wages paid to employees or contractors as a monthly total. The section is broken into programming and technical admin costs for the site, content creation, and administration.
Product
This section is for e-commerce websites. If your site sells anything, you will need to enter product costs in this section.
Misc
These are miscellaneous costs involved in running a website. These include professional service fees, taxes and licensing, and other expenses. If you have any expenses that don’t fit in elsewhere, enter them here (by month).
So, how much is my website worth?
Once you have filled in all of the revenue and expenses by month, the calculator will give you a preliminary value for your site. Below the Valuation Chart header, a normal distribution chart will appear, showing the distribution of potential values for your site.
At the center of the distribution (where the peak of the bell curve is), the amount is the average valuation for a site like yours, based on our dataset of sites listed for over $10,000 from popular brokers. From the chart, you can also determine the percentile ranges for the valuation.
If you want a more accurate valuation, you can fill in the Modifier section. This section lists characteristics of a website that may cause it to have a lower or higher value than the average. These modifiers are explained and calculated in my other valuation worksheets.
Key points
If you are considering selling your website, you will want to get an estimate of what it’s worth before you decide to contact a broker, list the site in a marketplace, or respond to an investor or flipper who has approached you.
Using my “how much is my website worth” calculator will help you get a good estimate. The calculator can be downloaded along with my Website Investing Beginner’s Kit above.