If you're buying or selling a website and don't understand multiples, you will almost certainly pay too much or sell for too little. Here's the plain-English explanation.
A "multiple" is the number you multiply a website's monthly earnings by to get its value. It's the single most important concept in website investing, and it's surprisingly simple once you see it laid out plainly.
The core formula
Most content sites sell at a 22x to 35x monthly earnings multiple
So if a website earns $200/month consistently, and it sells at a 30x multiple, the sale price is $6,000. If the multiple is 25x, it's $5,000. That's all a multiple is — a way of expressing price as a ratio of monthly income.
Not all $200/month sites sell for the same price. The multiple moves based on quality signals that buyers care about — things that make a site more or less likely to keep earning after they buy it.
When you see a listing priced at $5,000 earning $150/month, that's a 33x multiple. When you see one priced at $3,000 earning $150/month, that's a 20x multiple. The question to ask isn't "which is cheaper" — it's "does the quality difference justify the multiple difference?"
A site with 3 years of consistent organic traffic, diversified income, and a growing trend deserves a higher multiple than one that's been earning for 4 months from one traffic source. The multiple is the market's way of encoding all those quality signals into a single number.
Plug your monthly earnings and site details into our free calculator to get a realistic value range based on current market multiples.
Try the Valuation Calculator →