For those of you who buy websites, I’ve created the best spreadsheet tool for you. Do you ever wonder if a site you plan to buy will be a good investment a year from now? If you buy stocks or mutual funds, anything from 10-20% is considered a great return. So what about if you invest in websites and not stocks? Well this spreadsheet is for you.

I created a simple spreadsheet…it’s so easy a caveman could do it. You just type in your website name, enter in the current daily revenue, your investment (purchase price), your other revenues, and expenses (servers, content, advertising) and out pops your Year 1 revenue. To get Year 2 revenue, add the expected increase in daily revenue. Scroll to the bottom to find your ROI (return on investment).

The higher your ROI the better your investment.

This is a great tool to play with if you’re looking to borrow money from a friend or family family. You can put everything down in writing and check the numbers. Best of all, it’s all automated for you. You just edit a few spots highlighted in yellow, and the spreadsheet does the calculations for you.

Note: I set the default tax to 30%, so adjust it accordingly to your tax bracket.

Note: If you don’t keep a site for a year, then adjust the variables to your specific time frame. Say 30 days instead of 365.

Download Website Profit/Loss Spreadsheet Here