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How to Value a Website

The standard method for valuing a website is the SDE multiple: calculate the site's monthly earnings, then multiply by a category-specific factor that reflects risk and quality. This guide walks through the full method, with typical multiples for each business type and the factors that push values up or down. See also the valuation FAQ, acquisition checklist, and our step-by-step buying guide.

The SDE Multiple Method

Almost all small and mid-market website acquisitions use the SDE multiple approach. The formula is simple:

Asking price =

Monthly SDE × Multiple

Step 1, Calculate monthly SDE

SDE (Seller's Discretionary Earnings) is the total cash benefit a full-time owner-operator derives from the business. Start with the site's net profit, then add back: owner salary, non-recurring one-off expenses, and any personal expenses run through the business. Use a 12-month TTM average rather than a single month to smooth seasonal spikes.

Example

Revenue: $3,500/mo • Hosting + tools: $300/mo • Contractor: $500/mo • Owner salary: $0

Net profit: $2,700/mo → SDE: $2,700/mo

Step 2, Find the baseline multiple for your category

Multiples vary by business model because they reflect the predictability and risk of each type. SaaS businesses with recurring revenue command higher multiples than service businesses that require significant owner time.

CategoryTypical range
Content Sites30-45x
SaaS Businesses40-60x
eCommerce Stores24-36x
Newsletters30-45x
Online Tools & Apps35-55x
Online Communities20-35x
Service Businesses24-36x

Multiples are expressed as “X times monthly SDE”. Source: observed listings on Buy Sites Direct and industry benchmarks, 2026.

Step 3, Adjust for quality and risk

The baseline range is a starting point. The actual multiple depends on the quality and risk profile of the specific site.

Factors that increase value

  • Stable or growing organic traffic
  • Multiple revenue streams (ads + affiliate + sponsor)
  • Long track record (2+ years of consistent earnings)
  • Low owner time (<10 hrs/week)
  • Strong domain authority
  • Growing email list or social following
  • High- RPM niche (finance, legal, B2B)

Factors that decrease value

  • Declining traffic over last 6 months
  • Single revenue source (one affiliate program)
  • High owner dependence (founder's face/voice)
  • Traffic concentrated in one channel (one social platform)
  • Short track record (<12 months of earnings)
  • Pending or past Google manual actions
  • Seasonal revenue with large swings

Step 4, Calculate the asking price

Multiply monthly SDE by the adjusted multiple to get the fair asking price. Then sanity-check against active listings in the same category on Buy Sites Direct to see where the market is trading.

Example

Content site • SDE: $1,500/mo • Stable organic traffic, 2 revenue streams, 3yr track record

Baseline range: 30-45x • Quality factors: upper-mid range → 36x multiple

Valuation: $1,500 × 36 = $54,000

SaaS Valuation

Larger SaaS businesses are often valued as a multiple of ARR (Annual Recurring Revenue) instead of SDE. Micro-SaaS tools with under $10,000 MRR typically still trade on an SDE multiple. SaaS valuation also depends heavily on churn rate and NRR: a SaaS business with NRR above 100% can justify a significantly higher multiple than one with 5%+ monthly churn.

Key SaaS metrics to verify during due diligence: MRR, monthly churn rate, NRR, customer LTV, and CAC.

Common valuation questions

How much is my website worth?
Most websites are valued as a multiple of monthly Seller's Discretionary Earnings (SDE). Content sites typically sell for 30-45x monthly SDE, SaaS businesses for 40-60x, and eCommerce stores for 24-36x. A site earning $500/month in SDE might list for $15,000-$22,500 depending on category, traffic stability, and growth trend.
How are websites valued?
The standard method is SDE multiple valuation: calculate the site's average monthly net profit adjusted for owner compensation and non-recurring expenses (this is the SDE), then multiply by a category-specific multiple ranging from 24x to 60x. The multiple reflects how predictable, scalable, and defensible the business is. See our valuation FAQ for the full breakdown.
What multiple should a content site sell for?
Content sites with stable organic traffic and diversified monetization (display ads + affiliate) typically sell for 30-45x monthly SDE. Sites with strong SEO, growing traffic, and high RPM niches can command 45-55x. Sites with declining traffic or high dependence on a single affiliate program trade at discounts in the 20-30x range.
What increases a website's value?
The main value-drivers are: consistent or growing organic traffic, multiple revenue streams, a long track record (2+ years), low owner time requirements, strong domain authority, and a growing email list. Sites that are easy to hand off and continue generating revenue without the founder command the highest multiples.
What is SDE and how do I calculate it?
SDE is net profit plus owner salary, one-time expenses, and personal expenses run through the business. For a solo-operated website with $3,000/month revenue and $1,000 in expenses, the SDE is $2,000/month. Use a 12-month TTM average to smooth seasonal spikes. See the SDE glossary entry for the full formula.

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