Website Acquisition ROI Calculator
Before you put in an LOI, run the numbers. This calculator shows your projected ROI, payback period, cash-on-cash return, and a buy/negotiate/walk signal based on current market multiples for online business acquisitions.
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How to interpret your results
The multiple
Online businesses typically sell for 25x–40x monthly profit (roughly 2–3.5x annual profit). Where a specific deal falls within that range depends on growth rate, traffic source concentration, owner reliance, and niche defensibility.
| Multiple | Signal | What it means |
|---|---|---|
| Under 24x monthly | Potentially underpriced | Investigate why — distressed sale, declining traffic, or unusual deal structure |
| 24x–30x monthly | Buyer-favorable | Good starting point, room to negotiate |
| 30x–36x monthly | Market rate | Fair deal at current conditions; negotiate on terms not price |
| 36x–42x monthly | Seller-favorable | Seller has high confidence; you need a growth unlockable to justify |
| Over 42x monthly | Premium / speculative | Only justified by exceptional growth trajectory or strategic value |
Payback period
Your payback period is how long it takes to recover your purchase price from operating cash flow alone, assuming zero growth. Under 30 months is strong. Over 42 months means you're relying heavily on the multiple holding at exit to make money.
Year 1 cash-on-cash return
What you earn back in year one as a percentage of what you paid. 33% or higher means you're outperforming most real estate investments. Under 25% means the deal needs to grow or you're overpaying.
Hours per week matters
A business that earns $5K/month but requires 40 hours/week is a job paying $24/hour. A business that earns $5K/month requiring 2 hours/week is a $481/hour asset. Model this before you commit.
What the calculator doesn't tell you
Numbers alone won't close a deal safely. The ROI calculation assumes the revenue figures are real — but broker-listed revenue is only as good as the verification behind it. Before relying on any projection:
- Verify revenue against payment processor statements (Stripe, PayPal, Shopify, ad network payouts)
- Confirm traffic is organic, not bought — check Google Search Console for real impression data
- Understand customer or traffic concentration — one channel failing can collapse the model
- Get owner hours documented — "5 hours/week" often becomes 20 in practice