Calculating the dollar amount a website is worth is not very complicated. But there are factors involved where it could make it tricky to the untrained eye. The following are the main factors in estimating a websites value.

Revenue – The basic rule of thumb is your website is worth 10 times the amount of money it brings in every month. This of course only applies to websites that have consistent revenue.

Potential – What if your site is not making any money because you don’t have any advertisements on it? If that is the case then it falls back to potential. Calculating the value for that is a bit more complex and mostly has to deal with how much traffic the website is getting. On top of that, how much is that traffic worth? To give you an example 1,000 unique visitors to a loan website is worth 1000 times more than 1,000 visitors to a free wallpaper download site.

The term “beauty is in the eye of the beholder” applies for websites also. You can poll 100 people asking the value of a website and get a broad range of answers. Just to throw out one more expression that would help you understand how to calculate a websites value it would have to “another mans trash is another mans treasure”.

You can get a basic idea of how much your website is worth by using website value calculators but don’t take these to heart. Software cant measure potential or someone’s needs.