Enter the total number of monthly pageviews and enter an estimated RPM earned into the calculator to determine the worth of the website.
Website Value Formula
The following formula is used to calculate or estimate the value of a website.
WV = RPM*MPV/1000*50
- Where WV is the website value ($)
- RPM is the revenue earned per 1000 page views
- MPV is the monthly page views
In this example, the number 50 is considered the “multiple”. The multiple is the number of months of average profit that a website can be sold for. For example, a multiple of 50 is 50 months of profit.
A multiple of 50 may be on the high end for some types of online businesses and you can change it in the calculator above. The table below outlines some average multiples for different business types.
|Main Earnings Method||Monthly Multiple|
|Display Advertising Only||40-50x|
|50/50 display and affiliate||30-40x|
The reason that display advertising only has the highest multiple is that it’s the least likely revenue source to completely disappear and it’s considered that websites with only display advertising are underutilized in terms of earnings potential.