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How to Calculate ROI from Your Website Redesign and Digital Marketing Investment

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calculate website redesign roi

A website redesign is exciting. New visuals, stronger messaging, better user journeys.

But leadership teams usually ask a harder question: will it make money?

If you cannot connect design and marketing improvements to revenue, approvals stall and budgets shrink. The companies that win online are the ones that treat a redesign as an investment decision, not a creative exercise.

At SaskWebs, ROI conversations are where serious digital growth begins. Here’s how to calculate it properly, defend it in meetings, and track whether your project is delivering what it promised.

What ROI really means in a redesign project

ROI simply measures whether the profit generated from the upgrade exceeds what you spent.

However, websites influence revenue in multiple ways:

  • higher conversion rates
  • larger average orders or deal sizes
  • improved lead quality
  • stronger retention
  • lower acquisition costs

Some benefits feel intangible, like brand credibility or better usability, but most can still be translated into financial outcomes when you trace them far enough.

The core formulas you need

Let’s keep this practical and repeatable.

ROI (%) = (Net profit from the investment ÷ Cost of the investment) × 100

To find net profit, you must calculate the extra revenue the redesign helped create.

Incremental Revenue = Post-redesign revenue − Pre-redesign revenue

Because revenue is not profit, apply your margin.

Incremental Profit = Incremental Revenue × Gross Margin

If extra marketing or software costs are required to achieve that lift, subtract them.

Net Profit = Incremental Profit − Additional Costs

Metrics you must record before launch

You can’t prove growth if you don’t know where you started.

Before a redesign, capture at least:

  • total traffic by channel
  • current conversion rate
  • revenue per visitor
  • average order or contract value
  • close rate for leads
  • customer acquisition cost

This baseline becomes your comparison point at 3, 6, and 12 months.

Where most ROI calculations go wrong

Businesses often:

  • forget to include margin
  • assume traffic will stay constant
  • ignore sales follow up performance
  • measure too early
  • fail to separate redesign impact from ad spend increases

A modern site may improve results, but it still requires marketing fuel and operational discipline.

Estimating your potential lift (the smart way)

Because future performance is uncertain, professionals model scenarios.

For example:

  • Conservative → 5 percent conversion lift
  • Realistic → 15 to 25 percent
  • Aggressive → 30 percent or more

Even small improvements can produce dramatic revenue changes when traffic volumes are high.

Industry studies show average ecommerce conversion rates often sit between 2 and 4 percent, meaning small gains are meaningful.

A step by step ROI example

Let’s say a company currently generates $400,000 annually from its website.

Redesign cost = $25,000
Expected lift = 20 percent
Gross margin = 40 percent
Additional annual marketing cost = $5,000

Step 1: Calculate new revenue

20 percent of 400,000 = 80,000
400,000 + 80,000 = 480,000

Incremental revenue = 80,000

Step 2: Convert to profit

80,000 × 0.40 = 32,000

Step 3: Subtract added costs

32,000 − 5,000 = 27,000

Step 4: ROI

27,000 ÷ 25,000 = 1.08
ROI = 108 percent

Step 5: Payback period

27,000 ÷ 12 = 2,250 per month
25,000 ÷ 2,250 ≈ 11 months

That means the project pays for itself within the first year and continues generating returns afterward.

Here is downloadable spreadsheet ROI calculator: 

How redesign actually creates revenue growth

A high performing website design improves several leverage points simultaneously.

Better user experience

Cleaner navigation and faster load times reduce abandonment.

Clearer messaging

Visitors understand value faster and hesitate less.

Improved trust

Professional presentation increases purchase confidence.

Stronger calls to action

More visitors take the next step.

Enhanced data tracking

Marketing becomes more efficient.

When these stack together, performance jumps.

Why attribution matters

Without proper tracking, it becomes impossible to know which channels or improvements drove results.

Modern marketing uses multi touch models that distribute credit across interactions instead of giving all value to the final click.

This prevents under investing in awareness channels that assist conversions earlier in the journey.

How long before you see real ROI

Some UX gains appear immediately after launch.

SEO, content authority, and brand trust typically require several months.

For many businesses, the meaningful evaluation windows are:

  • 90 days → early performance signals
  • 6 months → trend validation
  • 12 months → mature ROI picture

Shorter timelines often mislead stakeholders.

Presenting the case to leadership

Decision makers respond to clarity.

Show them:

  • baseline metrics
  • three forecast scenarios
  • expected revenue impact
  • margin adjusted profit
  • payback timing
  • risks and assumptions

When numbers are transparent, approvals move faster.

The difference between a cheaper site and a profitable one

A low cost redesign may look good but fail to improve conversions, measurement, or marketing integration.

A strategic build focuses on:

  • search visibility
  • persuasive architecture
  • analytics wiring
  • lead routing
  • CRM integration
  • testing capability

Those are the features that create financial return.

How professional teams maximize ROI

Experienced agencies do not stop at launch.

They continue to:

  • test headlines
  • refine calls to action
  • analyze user recordings
  • optimize landing paths
  • align marketing with sales outcomes

Continuous improvement compounds gains year after year.

Final thoughts

When measured correctly, a redesign is rarely an expense. It becomes a revenue engine.

If you want to know what kind of return your business could expect, the team at SaskWebs can model your baseline numbers, build scenario forecasts, and identify the fastest path to payback.

FAQs

How quickly will I see ROI after a website redesign?

Typical payback is 3–18 months depending on industry, traffic sources, and margins; calculate a conservative scenario and track 3, 6 and 12-month windows.

Do I count brand value and efficiency savings in ROI?

Yes, call these “soft ROI.” Convert them to dollar estimates where possible (e.g., reduced support time × hourly rate).

Should I include marketing costs in the redesign ROI?

Include only the incremental marketing costs necessary to realize the uplift; separate ongoing baseline costs for clarity.

Which is a more accurate approach, ROI or LTV/CAC?

Both matter: ROI is the short-term profitability measure; LTV/CAC indicates long-term customer economics. Use both.

Can redesign alone drive a conversion lift?

Often yes for UX and speed issues, but top results combine redesign + CRO + targeted marketing.