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ROI calculators

Example: Reduce drop off rate on the check out submit page.
Pre-design Drop-off Rate: 60 % Average Order Size: 50 Improvement Cost: 1,000,000
Post-design Drop-off Rate: 40 % Profit Per Order: 20 % Expected Project Life: 3 years
Current Monthly Page Traffic: 100,000 views        
Change in Monthly Drop-off Rate = (0.60 - 0.40) x 100,000 = 20,000
Future Gain from Improvement = (20,000 x 50 x 0.20 x 12) * [(1+0.05)3 - 1]/0.05 – 1,000,000(1+0.05)3 = 6,408,375
Total Gain from Improvement = 6,408,375 / (1+0.05)3 = 5,535,795
Annual Gain from Improvement = 5,535,795 / 3 = 1,845,265
Annual ROI = 1,845,265 / 1,000,000 = 2 : 1
Total ROI = 5,535,795 / 1,000,000 = 6 : 1
Calculate Decreased Drop-off Rate
Pre-design Drop-off Rate: %
Post-design Drop-off Rate: %
Current Monthly Page Traffic:
Average Order Size:
Profit % Per Order: %
Improvement Cost:
Expected Project Life: Year(s)
Total Gain from
Improvement ($)
Annual Gain from
Improvement ($)
Annual ROI
Total ROI
 
Compare ROIs Scenario 1 Scenario 2 Scenario 3
Pre-design Drop-off Rate: % % %
Post-design Drop-off Rate: % % %
Current Monthly Page Traffic:
Average Order Size:
Profit % Per Order: % % %
Improvement Cost:
Expected Project Life: Year(s) Year(s) Year(s)
Total Gain from
Improvement ($)
Annual Gain from Improvement ($)
Annual ROI
Total ROI
 
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