4 Best Online Business Valuation Calculators
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If you’re considering selling your website or online business, you’re probably wondering how much it’s worth. While determining the value of a business isn’t an exact science, the most common valuation method involves multiplying the average monthly profit by a certain number.
The multiplier varies depending on several factors like the business’s age, monetization methods, niche or industry, and traffic and revenue trends. Additionally, different buyers have their own views and methods of determining value.
The best way to quickly get a feel for your business’s value is to use an online calculator. The calculators covered in this article ask for the relevant details of your online business to determine what it might be worth to a typical buyer. They’ll give you a range for the suggested value based on the details you provide.
We’ll cover the details of these tools below, but if you’re in a hurry, here are the top online business valuation calculators:
- Empire Flippers Valuation Tool
- Investors Club Valuation Tool
- Flippa Valuation Tool
- Motion Invest Valuation Tool
How to Determine the Value of Your Business
Website and online business values are usually determined by the average monthly profit and a certain multiple. Currently, multiples for established online businesses typically range from 24 to 42 months. So, if a site earns $5,000 per month in profit, it might be worth $120,000 to $210,000. That’s a broad range, but the calculators covered in this article should help narrow that.
Some online business models, like software as a service (SaaS), tend to fetch higher multiples. Buyers love SaaS businesses because of the recurring revenue and predictability.
Best Online Business Valuation Calculators
Now, let’s look at the specific tools you can use (for free) to get an estimated value for your business. If you already have your numbers (traffic, earnings, expenses), these calculators only take a couple of minutes. It’s worth trying a few of them to see how the values compare.
Keep in mind that the values provided by these tools are for the purpose of promoting their marketplace or services. They’re intended to show you what you can expect to get if you sell the site through them (of course, there are no guarantees). However, you may not be able to get the same value for your site if you try to sell it on your own.
For example, Empire Flippers has a massive network of potential buyers. High demand from buyers can drive prices up. If you sell the site on your own, you may not generate the same level of demand, and the offers could be lower.
1. Empire Flippers Valuation Tool
Empire Flippers offers my favorite valuation tool. You’ll start by choosing from more than 15 different business models. After you choose your business model, you’re led through a series of questions. You’ll provide details like your average gross and net revenue over the past 12 months, the number of hours you spend working on the site, the average number of visitors, and a few other details.
After entering those details, the tool provides a recommended business valuation, including a range from “absolute low” to “absolute high.”
It also details what you’re doing well and what you could do to increase the business’s value. You’ll also see listings of previously sold businesses similar to yours, including the sale price.
Empire Flippers offers an excellent (and free) website or business valuation tool. It only takes a few minutes to enter the details of your business, and you'll get a report on the estimated value. You don't even have to talk to anyone! It's my favorite tool for online business valuations.
2. Investors Club Valuation Tool
The valuation calculator from Investors Club is similar to the one from Empire Flippers, except it’s only intended for content-based and e-commerce sites. It asks for the same details as Empire Flippers, but also for a few other things, like whether your site has ever been hit by a Google penalty.
At the end, it provides you with a suggested range for selling your site through Investors Club. It also shows how much you can save in fees compared to selling through other platforms.
Investors Club offers a free valuation tool that only requires a few minutes of your time. Enter details about your site, including traffic, income, and expenses. The tool will provide you with a report showing your site's estimated value. If you like what you see, you can proceed to list it for sale with Investors Club.
3. Flippa Valuation Tool
Flippa’s calculator is very similar to the ones from Empire Flippers and Investors Club. Like the one from Empire Flippers, Flippa’s tool can be used with a variety of online business models and monetization methods.
Although it’s set up a bit differently (it works more like a conversation with a bot), it asks the same types of questions as the others.
Once you’re finished, Flippa provides an estimated range for the value of your site. From here you can schedule a consultation with a broker from Flippa, or go ahead and start your listing.
If you scroll down, you’ll also see some details about the business, like the multiple used in the calculation.
4. Motion Invest Valuation Tool
Motion Invest’s calculator is slightly different than the others. For starters, Motion Invest only deals with content sites like blogs and niche websites. Also, Motion Invest buys some sites directly in addition to running a marketplace, so you may get an offer for a direct buy plus a suggested price for a marketplace listing. If so, the direct buy offer will be lower than the suggested marketplace listing price.
The calculator asks questions about your primary monetization method, earnings, expenses, and traffic. When it’s done, you’re provided with a suggested list price for selling the site on Motion Invest’s marketplace.
Motion Invest is one of the best places to buy or sell content-based sites. Most brokers ignore businesses worth less than $100,000, but not Motion Invest. You'll find starter sites and established sites priced in the 4-5 figure range.
- 97% success rate
- Active marketplace with new listings each week
- More than 1,000 sites sold
How Much Is Your Business Worth?
If you’re wondering how much your website or online business is worth, the four calculators and valuation tools listed above are extremely helpful. With just a few minutes of your time, you can see a range of values with a suggested list price.
Whether you decide to sell on any of these platforms or not, it’s worth trying the valuation process. As an online business owner, these tools shed light on your business’s value as an asset you can sell.