How to Calculate SEO ROI
SEO ROI (Return on Investment) measures the profit generated from organic search relative to the total cost of your SEO efforts. It is the single most important metric for evaluating whether your search optimization strategy is working.
The standard formula for calculating SEO ROI is:
SEO ROI = ((Revenue from Organic Search - Cost of SEO) / Cost of SEO) × 100
For example, if you invest $2,000 per month in SEO and your organic search channel generates $14,000 in monthly revenue, your SEO ROI is 600%. That means every dollar invested in SEO returns $6 in revenue.
Unlike paid advertising where traffic stops the moment you stop spending, SEO delivers compounding returns. Content you create and rankings you earn continue to generate leads and revenue for months or years after the initial investment, making the true lifetime ROI of SEO significantly higher than what a single-month calculation shows.
What Inputs Matter for SEO ROI
Accurately calculating SEO ROI requires understanding several key business metrics. Here are the inputs that have the greatest impact on your projections:
Monthly SEO Investment
This includes all costs related to SEO: agency fees, content creation, tools, and internal time. Small businesses typically invest $1,500 to $5,000 per month, while enterprise companies may spend $10,000 or more. The calculator factors in your specific investment level to project realistic returns.
Organic Traffic and Conversion Rate
Your current organic traffic provides the baseline for growth projections. The average website conversion rate is 2.35%, but top-performing sites convert at 5% or higher. Even small improvements in conversion rate can dramatically affect ROI. For home service businesses, conversion rates from organic search tend to be higher because searchers have strong purchase intent.
Average Deal Value and Customer Lifetime Value
The revenue you generate per customer directly impacts ROI calculations. A plumber with a $350 average job value will see different returns than a roofer with a $12,000 average project. When you factor in customer lifetime value—repeat business and referrals over years—the true ROI of SEO increases substantially.
Industry and Competition Level
SEO ROI varies by industry. Industries with high customer lifetime values (like HVAC, roofing, and legal services) tend to see the highest returns. Local businesses competing in a single geographic area also see faster results than national brands competing for broad keywords.
SEO ROI Benchmarks by Industry
According to research published by FirstPageSage, the median SEO ROI across all industries is 748%. However, returns vary significantly depending on the sector, competition level, and customer value. Most businesses should expect an SEO ROI between 5:1 and 12:1—meaning every $1 invested in SEO generates $5 to $12 in revenue.
| Industry | Average SEO ROI | Time to ROI |
|---|---|---|
| Real Estate | 1,389% | 6 months |
| Home Services (HVAC, Plumbing, Roofing) | 800–1,200% | 4–8 months |
| Medical Devices | 1,183% | 9 months |
| Financial Services | 1,031% | 9 months |
| SaaS / Software | 702% | 9 months |
| eCommerce | 317% | 12 months |
| Higher Education | 994% | 12 months |
Source: FirstPageSage SEO ROI Statistics (2024). Home services estimates based on aggregated agency reporting data.
Home service businesses are particularly well-positioned for high SEO ROI because of two factors: strong local search intent (people search “plumber near me” when they need immediate help) and high average customer values. A single HVAC installation lead from organic search can be worth $5,000 to $15,000, which means even a handful of additional leads per month can generate significant returns on a modest SEO investment.
SEO vs. PPC: Comparing Long-Term ROI
Paid search (PPC) delivers immediate traffic, but the cost per acquisition tends to increase over time as competition bids up ad prices. SEO requires a longer initial investment period, but the cost per lead decreases as rankings improve and organic traffic compounds.
Research from BrightEdge shows that organic search drives 53% of all website traffic, compared to 15% from paid search. For home service businesses specifically, the average cost per lead from SEO is 61% lower than from Google Ads after 12 months of consistent investment.
The most effective strategy combines both channels: use PPC for immediate lead generation while building organic authority for long-term, sustainable growth. Our SEO ROI calculator above helps you model exactly how this investment pays off over time.
Frequently Asked Questions
What is SEO ROI and how is it calculated?
SEO ROI measures the revenue generated from organic search relative to the cost of your SEO efforts. The formula is: SEO ROI = ((Revenue from Organic Search - Cost of SEO) / Cost of SEO) × 100. For example, if you spend $2,000/month on SEO and generate $12,000 in revenue from organic traffic, your ROI is 500%.
What is a good ROI for SEO?
According to industry research from FirstPageSage, the median SEO ROI across industries is 748%. Most businesses can expect an SEO ROI between 5:1 and 12:1 (500% to 1,200%), meaning every $1 invested returns $5 to $12. Home service businesses often see higher returns due to high customer lifetime values and strong local search intent.
How long does it take to see ROI from SEO?
Most businesses begin to see measurable SEO ROI within 6 to 12 months. Initial results like improved rankings and traffic often appear within 3 to 4 months, while significant revenue growth typically follows in months 6 through 12. Unlike paid ads, SEO compounds over time, so ROI tends to increase the longer you invest.
What inputs do I need to calculate SEO ROI?
To calculate SEO ROI accurately, you need: your monthly SEO investment, current organic traffic or leads, your average conversion rate, average customer value or deal size, and customer lifetime value. Our free SEO ROI calculator above uses these inputs along with industry benchmarks to project your potential returns.
Is SEO more cost-effective than paid ads?
In most cases, SEO delivers a higher long-term ROI than paid advertising. While PPC delivers immediate traffic, the cost per lead typically increases over time. SEO has higher upfront costs but generates compounding returns: once you rank, organic traffic is essentially free. Studies show that the average cost per lead from SEO is 61% lower than from PPC for home service businesses.
Ready to Grow Your Organic Revenue?
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