SEO ROI & Keyword Return of Investment Calculator

This tool will automatically compute Annual ROI ratio of your SEO campaign.
Steps to use:
Step1: Go Google Adwords Keyword Tool to get Approx Avg Search Volume data of your targeted keyword.

Step 2: Enter the conversion rate.

Rules: One word (example such as “viagra”)=0.005, Two-word phrases (example like: “Affordable bicycles”)= 0.01 , Three or more phrases (example like: “Travel Guide Arctic”) = 0.02

Conversion rate is an estimate of the %of actual site visitors that will actually buy your product. Say you have 1000 site visitors in the month to your site coming from Google search engine using “Keyword X”, and from this number of site visitors 15 became your customers. So the conversion rate is 15/1000 or 0.015 , and in percent it will be 1.5%.

You can use historical data from your business to determine the conversion rate using that keyword. Or if you know your business very well you can estimate it too.

Step 3: Enter the margin per sale (per single product sold).Do not include currency.

Step 4: Enter your annual SEO budget plan.

Look at the figure under ROI ratio.Then:
a. If it is equal to 1, you will not make profits from this investment but you will break even your cost.
b. If it is more than 1, it can make you some profits although depending on your ROI targets.
c. Do not aim for campaigns with less than 1, you will not make profit from this type of campaign.

Aim for easy keywords, it will offer greater conversion, lesser annual SEO cost and faster results. But make sure those keywords have enough searches to establish conversion ( convert a visitor into a customer). This tool starts counting those margins after reaching the target position in organic results. Allow 5 months for your campaign to reach your desired targets. So your campaign plan calendar would be like this:

Month 1 to Month 5: SEO campaign
Month 6 to Month 12: 7 months site at target position
One year to One year and five months : The campaign reaches annual period of margin computation as projected above.

Take note that number of months to reach specified position varies depending on keyword difficulty and nature of the campaign.Take note this tool is only an approximation and if you need expert advice, double check with your financial or investment consultant.