Incremental Revenue Estimator
Calculate the marginal gain from small improvements. See how small lifts in Traffic, Conversion, and AOV compound into massive revenue growth.
Optimization Levers
Revenue Bridge
The Growth Wedge
+5.0% Growth
New Money
These changes create $5,000 in new annual revenue.
Compounding Power
Notice how the total growth (5.0%) is higher than the sum of the inputs (5.0%). That is the power of compounding multipliers.
Monthly Impact
This is equivalent to an extra $416.667 per month.
Execution Steps
Enter your Baseline Annual Revenue.
Input expected % lift in Conversion Rate (e.g. from better pricing page).
Input expected % lift in AOV (e.g. from bundles).
Input expected % lift in Traffic (e.g. SEO).
See the 'Incremental' money created.
Pro Strategy
- Focus on the lever with the most headroom. If conversion is already high (5%), focus on AOV. If traffic is low, focus on SEO.
- Small tweaks add up. A 5% lift is often achievable with a single split test.
- Use this number to budget for the project. 'If this redesign lifts conversion 5%, we make $50k extra. We can spend $10k on it.'
Core Concepts
Marginal Analysis
Focusing on the *change* in revenue (the delta) rather than the total. This justifies investment in optimization.
Compound Growth
Improving Traffic, Conversion, and AOV by just 10% each results in a 33% total revenue increase (1.1 * 1.1 * 1.1 = 1.33).
Optimization Levers
The three multipliers of ecommerce revenue: Traffic x Conversion x Average Order Value.
What is Incremental Revenue Estimator?
This estimator uses the fundamental revenue formula (Traffic x Rate x Value) to model the compound effect of marginal gains. It isolates the 'Incremental' portion to show the specific ROI of optimization efforts.
Best For
- • Prioritizing growth experiments.
- • Setting goals for marketing teams.
- • Evaluating the impact of a price increase (AOV).
Limitations
- • Assumes variables are independent (often they are correlated).
- • Forecast only, not a guarantee.
Alternative Methods
Scenario Simulator
More complex logic for Best/Worst cases.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Ecommerce Funnel
Stagnant growth.
Improved load speed (+5% traffic retention), optimized checkout (+5% conv), added cross-sells (+5% AOV).