How this calculator works
Online businesses don't sell on revenue or traffic — they sell on profit times a multiple. A site clearing $2,000 a month isn't worth its traffic or its backlinks; it's worth some number of months of that profit, paid up front, with the buyer betting the profit continues. The whole game is the multiple, and the multiple is a measure of risk: the safer and more durable the profit looks, the more months a buyer will pay for it.
This tool starts from the typical multiple for the business model — content sites, e-commerce, SaaS, and service businesses each trade in different ranges — then adjusts up or down for the four things every serious buyer scrutinises: how old the business is, how concentrated its traffic is in one source, whether revenue is growing or fading, and how much income recurs versus arriving as one-off sales. The result is a valuation range and a transparent view of which factors moved it.
The formula
Value is monthly profit multiplied by a quality-adjusted monthly multiple:
Each factor nudges the multiple: youth and single-channel dependence pull it down; age, diversification, growth, and recurring revenue push it up. Expressed annually, most results land between roughly 1.7× and 4× yearly profit — equivalent to 20–48× monthly.
- Base: this model starts near
34×monthly. - Established (30 mo): roughly neutral. Moderate concentration (50%): roughly neutral.
- Growing revenue: about +18%. 20% recurring: about +5%.
- Multiple ≈
42× monthly→ value ≈$84,000, or about 3.5× yearly profit.
What buyers discount hardest
The steepest markdowns come from youth (under a year of history is hard to trust), traffic concentration (most visits from one Google query cluster or one social platform is one algorithm change from zero), and declining revenue (you're buying a melting ice cube). Conversely, the biggest premiums go to recurring revenue and diversified, growing traffic. If you're selling, fixing concentration and stabilising the trend before listing can lift the multiple more than squeezing out extra profit.
Frequently asked questions
How are websites valued?
As a multiple of monthly net profit. Content sites commonly fetch ~30–45× monthly, e-commerce ~25–40×, SaaS 40×+. The multiple flexes with age, traffic diversification, revenue trend, and recurring income.
What multiple do websites sell for?
Annually, most trade between ~1.7× and 4× yearly profit (≈20–48× monthly). Higher for older, diversified, growing, recurring-revenue sites; lower for young, single-channel, or declining ones.
Is this an appraisal?
No — it's an estimate based on market multiples and quality factors, useful for a first read on a listing or your own site. Actual sale prices depend on diligence, niche demand, asset quality, and negotiation. Treat it as a starting point, not a guarantee.
Should I use profit or revenue?
Net profit (what's left after all costs), not revenue. Two sites with the same revenue can be worth wildly different amounts depending on margins, so the multiple is always applied to profit.