The four lever revenue calculator
This calculator builds your annual revenue from the four numbers that produce it: visitors, the share who buy, what they spend per order, and how many orders each customer places in a year. It then applies the same percentage improvement to all four at once and shows the new revenue, the difference and the overall multiple. The point is to show compounding. A small change on each lever multiplies through the others, so four modest gains add up to a large one. It is a model, not a forecast. It assumes the four numbers are independent, which they are not perfectly, and it says nothing about what each improvement costs to achieve.
Extra revenue per year
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- Annual revenue now
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- Annual revenue after improving all four
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- Growth multiple
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Plain arithmetic on your inputs. Nothing is sent anywhere. Not a forecast.
How the four numbers multiply
Annual revenue is visitors multiplied by conversion rate multiplied by average order value multiplied by orders per customer per year. Say a store gets 240,000 visitors a year, converts 2.0 percent of them, takes 75 dollars an order and sees each customer order 1.5 times in the year. That is 4,800 first orders, 360,000 dollars from them, and 540,000 dollars once repeat orders are counted. The calculator then raises each of the four numbers by the improvement you set and multiplies again. With a 10 percent improvement on each, every lever becomes 1.1 times its old value and the product is 1.1 to the power of four, which is about 1.46.
Why the multiple is bigger than the improvement
A 10 percent gain on one lever gives 10 percent more revenue. The same gain on all four gives 46 percent more, because each gain is applied to a base that the others have already raised. This is why the growth multiple in the results is always larger than the improvement you typed. It is also why chasing one lever hard is usually the expensive route. Doubling visitors costs a great deal in ads. Improving each of the four by a tenth is often four small projects: a feed fix, a checkout change, a bundle and a reorder email.
How to use this with your own plan
Enter your real numbers from the last twelve months, then set the improvement to zero and check that the revenue now figure roughly matches your accounts. If it is far off, one of the inputs is wrong, most often orders per customer, which you should take from a customer report rather than guess. Then set a modest improvement you believe you can reach on every lever and read the extra revenue figure. That is the size of the prize for working on all four together, and it is the number a growth plan should be built around.
Questions
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Want these numbers read for you?
Send your store. The plan runs your real figures through the four levers.