"What's the ROI of A/B testing?" It's the question every CFO asks. Here's the math — with a calculator to run your own numbers.
The Simple Truth
A/B testing ROI is straightforward: small conversion improvements compound into massive revenue gains. A 10% improvement in conversion rate means 10% more revenue — every month, forever.
ROI Calculator
Industry average: 20-30%
Industry average: 10-20%
Annual Impact
Winning Tests/Year
14
Cumulative Lift
+713.7%
Additional Revenue/Mo
$713,700
Annual ROI
1,456,431%
The Math Explained
Compounding Wins
Each winning test compounds on previous wins. If you get 10% lift, then another 10% lift, your total improvement isn't 20% — it's 21% (1.10 × 1.10 = 1.21). Over a year of testing, these compound dramatically.
Permanent Gains
Unlike paid advertising, conversion improvements are permanent. A 10% lift this month means 10% more revenue next month, and the month after, forever.
Avoided Losses
Not counted in the ROI: the bad ideas you didn't implement. About 70% of test ideas don't win. Without testing, you'd ship those losers and hurt revenue.
A Real Example
Let's say you're an e-commerce store with:
- $100,000/month revenue
- 3% conversion rate
- You run 4 tests/month, 30% win with 15% average lift
After one year of testing:
New Monthly Revenue
~$150,000
Additional Annual Revenue
~$600,000
Tool Cost vs Value
| Tool | Annual Cost | Break-Even Lift Needed |
|---|---|---|
| ExperimentHQ Pro | $588/year | 0.06% |
| VWO | $10,000+/year | 1% |
| Optimizely | $50,000+/year | 5% |
*Based on $100,000/month revenue. Break-even = lift needed for tool to pay for itself.
The Bottom Line
A/B testing has one of the highest ROIs of any marketing investment. Small improvements compound into massive gains. The only question is: are you capturing that value, or leaving it on the table?
Use the calculator above with your real numbers. The ROI will speak for itself.