Example: Increase conversion rate by 5 %.
Annual Site Profit: 1,000,000 Improvement Cost: 100,000
Current Conversion Rate: 10 % Expected Project Life: 3 years
Improved Conversion Rate: 15 %    
Future Gain from Improvement = [(1,000,000 x (15/10) ) - 1,000,000 ] * [(1+0.05)3 - 1]/0.05 – 100,000(1+0.05)3 = 1,460,487
Total Gain from Improvement = 1,460,487.50 / (1 + 0.05)3 = 1,261,624
Annual Gain from Improvement = 1262305.53 / 3 = 420,541
Annual ROI = 420,541 / 100,000 = 4 : 1
Total ROI = 1,261,624 / 100,000 = 13 : 1
Calculate Increased Conversion Rate
Annual Site Profit:
Current Conversion Rate: %
Improved Conversion Rate: %
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
Annual Site Profit:
Current Conversion Rate: % % %
Improved Conversion Rate: % % %
Improvement Cost:
Expected Project Life: Year(s) Year(s) Year(s)
Total Gain from Improvement ($)
Annual Gain from Improvement ($)
Annual ROI
Total ROI