the ultimateWeb Speed Cost Calculator
This calculator will help you determine the amount of losses you company might be experiencing if your web pages load slowly.
Enter data from your website’s analytics dashboard.
Why is website speed important?
Numerous studies have shown that the longer it takes for the website to load and become functional, the more visitors leave thinking that something is wrong, faulty or simply by getting tired of waiting.
We had decided to calculate how serious the impact could be and were shocked by the results. If your company sells products to thousands of people on a daily basis, your business is losing thousands of dollars (euros) in marketing budget and opportunity costs.
If your business relies on the quality of leads and the average deal (cheque) is high, slow website can be devastating to your company.
Every prospect who had decided to quit waiting before the website has loaded, will go to a competitor and increase their chances of success. Read an article about how slow website speed destroys your business.
Online advertising losses formula
AL = ANV x (AS-SB) x BC x CPC x T
Opportunity costs formula
OC = (NV x (AS-SB) x BC) x CR x AC x T
Variables used in the formula
AV — average number of visitors per day = 1000;
RV — returning visitors per day (are OK with waiting) = 40%;
NV — new visitors = 60%;
ANV — acquired new visitors = NV/2 = 30%;
AV = RV+NV;
BC — bounce constant = 10%;
CR — conversion rate (visitor to customer) = 2%;
T — time = 365 days;
AC — average cheque (purchase) = 50 USD;
SB — speed benchmark = 3 seconds;
AS — actual website load speed = 8 seconds;
CAC — customer acquisition cost;
CPC — cost per click = 2 USD;
L — losses.
What is a good website speed and how fast should it load?
There are several things that effect the page load speed: the distance between the user and the server, the size of the page, number of elements, the sequence in which certain elements are loaded — just to name a few.
In general, it is a good idea to keep your page load speed below 3 second threshold due to the fact that website visitors tend to abandon websites that load slowly. In other words, slow websites provide bad user experience (UX). Recent (2021) Google’s initiative — Core Web Vitals — introduced signifficant changes to the ranking approach suggesting that UX is going to play a crucial role in ranking pages that appear in search results.
To know more about this particular metric and other industry benchmarks, visit another page where we provide links to various resources — Website Speed Optimization.