Websites are businesses. We inform our clients that businesses are worth the current value of future cash flows. Now what they actually sell for is what someone is willing to pay for it but what it's worth, is the sum total of future cash discounted by inflation, the cost of capital and risk to a figure that can be computed in today's dollars. We didn't make this up. This is how its done.
You may be asking yourself, "what about the good will, the brand, the customers, the content, the software?". Even those assets must at some point in the future turn into cash. Otherwise they wouldn't be assets. Businesses are started to turn a profit. So the more accurately you can predict that profit and the associated risks, the more accurate your appraisal will become.
This "what is my website worth" calculator is free and here to help you think through some tough issues. Please contact one of our brokers if you would like to schedule a free consultation to learn about your options to sell your site. If you are a buyer and you are trying to analyze your return on a purchase, you should be using the net present value calculator.
To begin our website value calculator, enter the name of your website. Our calculator allows you to save your progress and return at a later date. Your website name will serve as your saved project name.
We are sure you’ve heard of the “time value of money” concept. We’ll do the math but you have to chose a discount rate and risk adjustment for the calculation to happen. Please click the help icons for detailed explanations on each. If you still aren’t sure, we strongly recommend the use of our default 10% figures.
We are assuming your website is an ongoing concern. In other words, that the cash will keep coming year after year. The number below is what the last year of profit you have indicated in step 3 is worth, in perpetuity. It assumes the same amount each year for eternity. The number is then discounted by the Risk Adjusted Discount Rate from step 2.