SEO costs can range from a few hundred to thousands of dollars, depending on the size of your website and the complexity of your SEO goals. If you don't pre-plan your budget, you may end up overspending. An SEO cost calculator helps avoid this by giving you an approximate budget to work with.
Sure, your SEO expenditure may go up or down from the initial estimate. However, a budget calculator is an excellent starting point that allows you to allocate your resources wisely. In our AI in SEO report, we've revealed the role of AI in the professional toolbox of today's SEO specialists. An SEO budget calculator fits right in there with AI SEO tools.
Below, we explain the use of our SEO budget calculator along with detailed tips on effective budget planning for your organic search strategy.
- How to Use the SEO Budget Calculator to Plan Effectively
- Key Considerations For SEO Budget Planning
- Optimizing Your SEO Budget for Maximum Impact
- The Benefits of Using an SEO Cost Calculator
- SEO Costs You Didn't See Coming (and How to Avoid Them)
- Make Informed SEO Investments with Our Free Calculator
- Frequently Asked Questions
How to Use the SEO Budget Calculator to Plan Effectively
The SEO budget calculator is pretty simple to use. All you have to do is enter the required inputs, and you'll get an estimated budget for your SEO efforts.
In some instances, you may not be able to input the precise value for each factor. For example, the number of customers converted through organic search in a month may be 5,532. However, you can enter 5,500 as a close approximation. The closer your estimate, the more accurate your budget projection will be.
You can play around with different inputs to see how they affect your budget. This will help you see which segments are contributing more to your overall SEO costs and where you can potentially make adjustments.
Key Considerations For SEO Budget Planning
When you're budgeting for SEO, you shouldn't expect it to be exactly what the industry average may be. SEO costs differ across industries, services, business sizes, and geographic locations.
Businesses spend anywhere from $250 to $10,000 per month on SEO. Most of them (63%) spend $500 to $5,000. Local SEO is comparatively more affordable because it targets a smaller audience. It averages at around $1,557 per month.
These are some standard figures you should keep in mind when using the SEO budget calculator. If your calculations are going way beyond $10,000 per month, you may need to revise your strategy.
Similarly, if your budget is way below the industry average, you should look at where you're cutting corners. The key is to understand that SEO service packages have different pricing models. Some may be charged by the hour, while others may have a set monthly fee.
The number and complexity of services included in an SEO package will also affect the price. For example, a package that includes content creation and link building will likely cost more than one that only focuses on keyword research and website optimization.
Additionally, the following factors influencer SEO budgets for businesses:
- Industry Competitiveness: Let's say Business A is an apparel brand, while Business B is a transportation company, which, according to Yahoo Finance, is one of the least competitive industries in the world. Due to the high competitiveness in the apparel industry, Business A will have to invest more in SEO to stand out from its competitors. On the other hand, Business B can create a place for itself on the SERPs with a lower budget.
- Geographical Targeting: As we've already discussed, local SEO packages are cheaper than national or global SEO services because targeting a smaller geographical area requires less effort and resources compared to targeting a larger one.
- Short-term vs. Long-term: The longer your SEO strategy runs, the more time and resources it will require. Link-building is an example of a long-term strategy that demands continuous effort and investment, which means it will be more expensive than, let's say, a one-time audit of your website.
- In-house Team vs. Outsourcing: SEO costs also depend on whether you're doing it in-house or outsourcing to an SEO agency. In-house teams are usually more expensive since you have to pay salaries, benefits, and other expenses. Plus, you must provide them with a space. Even if taking a remote or hybrid approach, you'll have to invest in collaboration tools. Outsourcing is more flexible since you can only select the services you need. Also, there are plenty of SEO agencies to choose from, giving you more options for your budget.
Breakdown of SEO Costs
Instead of going too deep into each and every service, we can divide the main SEO costs into:
- On-page SEO
- Off-page SEO
- SEO tools
- Agency or freelancer costs
Before explaining each of these costs individually, let's look at what an average SEO budget looks like. Yours doesn't have to be exactly the same, but it can give you an idea of what to expect. A quick tip is not to ignore the customer lifetime value when planning your budget. In some cases, SEO efforts might not show immediate results, but they can bring profit in the long run.
- Number of new customers acquired through organic search in a month: 100
- Average net income (profit) around product/services: $5,0000
- Average number of sales per customer over their lifetime: 5
- Monthly SEO marketing budget: $10,000
Based on these figures, our total average lifetime profit is $2,500,000, and the total profits from new organic search customers per month are $1,000,000. This means the monthly profit is $9,900, which is quite understandable since the average ROI of SEO can be between $550% and 1,220%.
So, what is included in the $10,000 that's giving you an ROI of around 9,900? Let's dissect.
On-page SEO
On-page SEO is everything you do on your website to optimize it for search engines. It includes keyword research, content optimization, meta tags, URL structure, internal linking, and technical SEO.
It's usually the ongoing cost because, for each new content you create or update, you need to do keyword research and optimize it.
Off-page SEO
Off-page SEO services, such as link-building and PR, are focused on building your website's authority and credibility. Again, it's not a one-time cost. It's usually an ongoing monthly expense to maintain and improve your website's ranking.
According to Credo's study, over 29% of SEO project retainers in the world go on for 6 to 12 months. In the US, the figure is even higher at nearly 32%. So, when you're calculating your SEO costs, you should budget for at least six months. Simply put, you should be able to bear the monthly cost for at least six months to see tangible results.
SEO project retainer length minimum
SEO Tools
SEO tools have become somewhat of a necessity these days as they can automate a ton of tasks, from keyword research to tracking your website's performance. These tools usually come with a monthly subscription fee, and depending on the complexity of your SEO strategy, you might need more than one tool.
Semrush, one of the best options, costs $139 per month for its most basic plan. However, if you have a bigger website and want to track more keywords, you'll need the Guru plan, which costs $249 per month.
Similarly, Ahrefs’ cheapest plan costs $129 per month, but it only lets you track 750 keywords. It doesn't include AI suggestions, search intents, keyword clustering, and translations. If you need these features, you'll at least need the Standard plan for $249 per month, making Semrush the more cost-effective option overall.
So, $249 is the magic number for most SEO tools. You'll essentially need to shell out this much every month to get all the features from one of the top players in the market. For even more advanced features, you're looking at around $500 per month.
However, investing in SEO tools is worth it since it will help you lower your overall lead generation costs, which will eventually compensate for the subscription costs. A good example of this comes from Pointe Pest Control, a company that lowered its cost per lead from $104 to $10 using Semrush.
Here’s how they did it:
- Increased Domain Authority: First, they used Semrush’s Domain Overview tool to measure metrics like organic search traffic and backlink quality. They realized that their website had a much lower authority than their competitors. So, they listed their business in local directories and maps. The Semrush Listing Management tool helped them keep their online listings up to date across 70+ maps and directories.
- Targeted Niche Keywords: The company also used the Semrush Keyword Magic Tool to find niche keywords based on their monthly search volume, search intent (to aim at transactional and commercial keywords), CPC, and keyword difficulty. After finding relevant keywords, they used the Semrush Keyword Overview to find popular questions related to the terms. These questions became the topics for their blog posts and FAQs.
- Maintained Site Health: Thanks to the Semrush Site Audit tool, Pointe Pest Control could view and manage their site health. They identified the issues with their website and fixed them using Semrush’s recommendations.
Semrush site audit
As a result, they ranked #3 for more than 50 keywords. They also got nearly 100 leads a week. Together, these results made the monthly subscription costs for Semrush worth it.
Agency vs. Freelancer Costs
It shouldn't come as a surprise that agencies and consultancies charge more for SEO services compared to freelancers. The former usually have more resources, a larger team, and advanced tools, so they understandably have higher costs.
The Ahrefs study we mentioned above found that agencies charge $3,209 per month on average compared to $1,348 for freelancers. This difference is significant, but it's not surprising considering the differences in services offered between the two.
If we break down this cost by the hour, here's how it goes:
- Agencies: $98.90 per hour
- Freelancers: $71.59 per hour
- Consultancies: $171.18 per hour
As you can see, agencies and consultancies have significantly higher hourly rates than freelancers. However, the pricing is justified as they often offer a broader range of services, including bespoke strategies, in-depth analysis, and ongoing support.
While both agencies and freelancers typically charge between $75 and $100, 58.7% have a $75+ hourly rate compared to just 36.6% of their freelance counterparts. So, don't let the average hourly rates deceive you. It's quite possible to find freelancers who charge much less than $75 per hour, but you'll have to do your research and vetting thoroughly.
Common SEO Pricing Models
We've already touched on the types of SEO pricing models. Let's cover them in detail.
Monthly Retainer
A monthly retainer means you'll have to pay an amount every month for an agreed-upon set of services. Ahrefs found this to be the most commonly used SEO pricing model, opted for by over 78% of SEO providers.
On average, a monthly retainer can be between $1,000 and $10,000. The actual pricing will depend on the services. For example, a simple local SEO package may cost around $500 per month, while more comprehensive strategies can go up to $5,000 or more. If you look around, you might also find more affordable SEO packages from smaller agencies or freelancers.
Fixed-Price Contracts
In a fixed-price contract, you're charged for any and everything SEO-related for a certain period. Let's say you draw a contract with an agency to improve your SERP rankings by 20 places. It's up to the agency to use whatever techniques and tools they deem necessary to fulfill the contract.
On average, fixed-price contracts can range between $5,000 and $30,000. The price is at the higher end when your requirements are complex, such as building an online presence for a business from scratch through a blend of SEO tactics.
Project-Based Pricing
Project-based pricing is similar to fixed-price contracts but with a few key differences. Unlike the contract's defined scope and deliverables in fixed-price contracts, project-based pricing allows you to approach your agency for specific tasks or projects.
For example, your project may be a site audit. The agency or freelancer will quote you a price based on the scope of work, and you'll pay exactly that amount once the work is delivered.
Credo's data shows that for over 18% of single projects, the minimum cost is between $1,000 and $1,999. But again, this may be lower or higher depending on the complexity of your project.
Hourly Rates
Hourly rates are becoming less common in SEO pricing models, but they're still used by some agencies. As for freelancers, many of them use an hourly rate for their SEO services. On average, the hourly rate for SEO experts is between $100 and $200.
SEO Hourly rates
As we've mentioned in the sections above, Ahrefs found that $75 to $100 is a common range. However, the same study also found that hourly rates increase with experience. So, when working with an agency or freelancer, expect to pay more for their expertise and years of experience in the field.
Our guide on SEO packages for small businesses covers plans for businesses on a tight budget.
Optimizing Your SEO Budget for Maximum Impact
Ideally, you want your search engine marketing costs to translate into maximum impact and ROI for your business. Here's how to make the most out of every cent you spend.
Use Data-Driven SEO Audits to Perfect Technical SEO
Don't make the mistake of overlooking your technical SEO. It's the foundation of your website, and if that's not solid, then you're throwing money down the drain.
Use a tool like Semrush Site Audit to conduct regular SEO audits. It'll give you an overview of your site's health and can help pinpoint technical issues that need to be fixed. Some of these issues are:
- Broken links
- Content gaps
- Keyword cannibalization
- Duplicate content
- Thin content
- Slow loading times
Site Audit also tells you if your site is crawlable by GoogleBot. If it's not, the tool will tell you what errors are preventing GoogleBot from crawling.
Invest in a Backlink Strategy
You already know backlinks are imperative to your SEO success. But you don't want just any backlinks. You want quality, relevant backlinks that will boost your website's authority.
Make sure the backlinks you get are natural. Don't use paid guest posts or private blog networks to generate backlinks. Instead, focus on creating high-quality content that others will want to link to naturally. This could include:
- Guest blogging on relevant industry websites
- Creating shareable infographics and visuals
- Collaborating with other businesses for cross-promotion opportunities
- Building relationships with industry leaders and obtaining backlinks through networking
For example, we have created several statistics articles that get a lot of backlinks. Similarly, our Influencer Marketing Benchmark Report has over 12,000 backlinks since it's such a rich, informational resource.
Backlink analytics
Instead of going for quantity, opt for quality when it comes to backlinks. A few high-quality, relevant backlinks will have a much bigger impact on your SEO than dozens of low-quality ones. If creating a backlink strategy is your main requirement, you can work with link-building services to help you get quality backlinks from relevant websites.
Use SEO Tools
Possibly the most ROI-driven SEO tactic is using SEO tools. If you use them the right way, the results will justify pretty much your whole SEO budget.
But don't just fall into a maze of tools and subscriptions. Instead, determine if you really need the tool by analyzing the tasks you need to perform. Keyword analysis, organic research, AI content generation, site audit, and rank tracking are just a few of the tasks you can perform with these tools.
Deezer's effective use of Semrush is an excellent example of optimizing your SEO budget with tools. When the music streaming site went down in ranking after a Google core update, they brought Semrush into the picture. They used the tool to:
- Find scalable keyword opportunities.
- Conduct keyword gap analysis with Semrush's Keyword Gap tool to identify competitors' top-performing keywords.
- Build a keyword list for content optimization based on the keyword positions revealed by the Semrush Organic Research tool.
- Write unique and SEO-optimized content based on the keyword lists.
Semrush organic research
As a result, they saw a 100% increase in traffic growth and 335% keyword growth on their target SERP. With these results, it made total sense for them to invest in the tool.
Repurpose and Expand Content
You don't have to spend money every time you need to create content. With a little creativity, you can easily repurpose and expand your existing content to attract more traffic.
For example, a blog post that's doing quite well can be converted into an infographic. Similarly, if you have hosted a podcast episode with an industry expert, you can create a blog post highlighting the key takeaways from the episode. This approach saves you resources and money when creating content.
A/B Test SEO Strategies
Part of the reason SEO budgets can spiral out of control is due to the trial and error process. Often, businesses will invest in strategies without knowing whether they'll truly be effective. A/B testing can eliminate this uncertainty.
Test different SEO strategies on small subsets of your target audiences to gather data and insights to determine which tactics are actually working and worth investing in. A very simple example of this is creating two different meta descriptions or headings for the same page and seeing which one generates more clicks.
With A/B testing, you don't have to blindly invest in SEO strategies and hope for the best. You can make data-driven decisions that will ultimately save you money.
The Benefits of Using an SEO Cost Calculator
Another tip to optimize SEO expenditure is to use an SEO cost calculator. Here's how it's helpful:
- Real-time Projections: With an SEO budget calculator, you don't have to wait till the end of a campaign to see if it was successful. You can input your budget and target keywords to get real-time projections on potential traffic, clicks, and conversions.
- Precise Budget Planning: Since you have real-time projections, you can plan your budget accordingly. So, you're neither overestimating nor underestimating how much you'd have to spend to get results.
- Personalized Strategy Creation: The SEO budget calculator shows you results as you change the input variables. Even before you start investing money, you can see how tweaking expenditures in different areas can impact the overall results. It's much easier to create a personalized strategy this way since you have all the information you need before your SEO campaign begins.
Customizing Your SEO Strategy Based on Calculator Results
An SEO budget calculator lets you personalize your SEO strategy. But how?
The first step is to use the data to its full potential. In the SEO budget estimation we did earlier, we found the monthly profit to be $9,900 for SEO expenditure of $10,000. These ROI projections from the calculator show us that spending $10,000 is fine if we want to have a positive ROI.
However, what if we change the variables again and see that an SEO budget of $5,000 would give us a monthly profit of $7,000? It's not as much profit as $10,000, but it's a higher ROI. So, we can use this information to adjust our budget and focus on areas that give us the highest ROI.
When customizing your SEO strategy based on this data, it must align with your business goals. For example, if your goal is to increase website traffic, you should allocate more of your budget to keyword research and content creation.
This is where your SEO priorities also come into play. Maybe you already have good enough content on your website. However, your site lacks authoritativeness. This means you can allocate more budget for link building and outreach efforts to improve your website's authority.
The calculator also helps you determine if you should go for an agency or a freelancer. Let's say for your desired outcomes, the SEO budget comes out to be $2,000. You know it would be hard to find an agency willing to take on such a small budget, but you might be able to find an individual freelancer.
But if the calculated budget is over $5,000, you can start looking for affordable SEO services. For a budget over $10,000, you won't have trouble finding a seasoned agency to handle your SEO needs.
SEO Costs You Didn't See Coming (and How to Avoid Them)
Monthly SEO packages and tool subscriptions are those SEO costs that are hard to overlook. But there are several hidden SEO costs that can creep up on you. Here are some of them.
Ongoing Costs
We've already talked about this; SEO is an ongoing expense. If you think that one-time fixes and optimizations will keep your website at the top of search engine rankings forever, you're in for a rude awakening.
In a Google Search Central video, Maile Ohye explained,
"SEOs need four months to a year to help your business first implement improvements and then see potential benefit."
However, businesses often tend to underestimate the ongoing costs of SEO, which ultimately leads to budgeting issues and ineffective campaigns.
Solution: Account for at least six months of ongoing SEO costs in your budget and be prepared to continuously invest in SEO for long-term success.
Niche-Specific Needs
A common mistake businesses make is sticking to generic estimates and not considering the unique needs of their industry or niche. In the competitiveness section above, we explain how highly competitive industries require more resources and, thus, have higher SEO costs.
Similarly, some niches have their own set of challenges, such as strict regulations or limited keyword options. Take fintech as an example. Businesses in this industry have to be extra careful with their SEO strategies due to the highly regulated nature of the industry. This could mean additional costs for compliance and specialized SEO services.
Solution: Conduct thorough research on your niche-specific needs and allocate resources accordingly. It also helps to work with an agency that specifically caters to your industry since they'll have the know-how of the SEO budget needed for your niche.
Google Penalties
If you engage in unethical SEO practices or make mistakes that violate Google's guidelines, your website might face penalties. These can have severe consequences, such as lower rankings or even being removed from search results altogether. Recovering from a penalty means spending more money on SEO since you have to fix the issue and rebuild your website's reputation.
Besides an update, poor backlinking practices are one of the most common causes of penalties. Google's Penguin algorithm identifies unnatural linking patterns. So, your site can get penalized if you have too many spammy or low-quality backlinks.
Solution: Avoid black-hat SEO techniques and keep up with Google's updates. We have an extensive guide on Google Core updates to help you out. Plus, invest in high-quality backlinks from reputable sources and regularly audit your backlink profile to remove harmful links.
Tool Subscriptions
You start with one tool, and then a few months down the line, you're paying for half a dozen. It happens all the time with SEO since you might think every tool has something different to offer. But each one adds up, and before you know it, you're spending hundreds of dollars per month.
Solution: Before subscribing to a new tool, do your research and ensure that it offers unique features or complements your existing tools. If you can make do with limited features, stick to free versions of SEO tools.
Content Revamps and Site Structure Issues
Since low-quality content is detrimental to your SEO efforts, you have to spend money on rewriting or revamping content. Similarly, poor site structure requires you to pay a web designer or developer to make the necessary changes.
Solution: Write high-quality, evergreen content from the get-go instead of constantly having to revamp it. Also, conduct regular SEO audits to catch and fix site structure issues early on.
Make Informed SEO Investments with Our Free Calculator
Before you start looking for SEO packages, we recommend using the SEO budget calculator to get an estimate of what you should be spending to achieve your goals. The calculator is by no means a comprehensive solution, but it can provide a rough estimate to help guide your decision-making process.
As we've covered, it's best to budget for anywhere from 6 to 12 months since SEO strategies can take time to show results. Only settle on an amount that you can at least allocate into your budget for the next year. Also, keep some room for hidden costs such as website redesigns or content creation.
Once you've done all that, check out our guide on how to choose SEO packages to select the best option for your budget range.
Frequently Asked Questions
How can an SEO calculator help me budget for my business?
An SEO calculator gives you an estimate of how much you should budget for your SEO efforts to get certain results. It helps you decide what kind of budget you should set aside for your SEO campaign and also gives you an idea of how much ROI you can expect from that budget. You can then determine if this budget will be feasible for you to manage for the next few months to a year.
What factors impact the cost of an SEO campaign?
The cost of an SEO campaign can vary depending on several factors. First, the size of your website and the complexity of the changes needed will impact the SEO costs since bigger sites usually need more work. Then there's the competition in your industry; if you're up against a lot of strong competitors, it'll take more effort (and money) to rank higher. The scope of services you need, like content creation, keyword research, technical fixes, or link building, also plays a role. Lastly, the agency or freelancer's experience can impact costs as seasoned experts tend to charge more.
How accurate are SEO cost calculators?
SEO cost calculators can give you a ballpark figure, but they're not super precise. They typically use average industry rates and assume standard tasks, so they won't account for the specific needs of your website and your unique goals. They're a helpful starting point but should be followed up with a more detailed consultation for a real estimate.
What are the typical costs included in an SEO budget?
A typical SEO budget includes the following costs: on-page SEO, off-page SEO, SEO tools, agency or freelancer costs, and any miscellaneous expenses such as penalty recovery or site restructuring. You should always room in your SEO budget for unexpected expenses.
How often should I review my SEO budget?
While there's no hard and fast rule, many SEO experts recommend reviewing your SEO budget every 6 to 12 months. Don't do it more often than that because SEO takes time to deliver results. If you overdo budget reviews, you might end up making changes before your efforts have had substantial time to work.
Is it better to work with an SEO agency or a freelancer?
Whether it's better to work with an SEO agency or a freelancer depends on two main things: your budget and SEO needs. If you're a small business or a solo entrepreneur with a limited budget, a freelancer is more affordable. But if you can churn out a higher budget or have more extensive SEO needs, an agency may be the better option. Agencies are also better for handling large-scale projects or bigger websites.
Can I use an SEO calculator for any industry?
The short answer is Yes. However, know that some industries have unique needs due to their competition levels or strict regulations. An SEO calculator won't account for these things, so you'll have to consider them yourself.
How long does it take to see results from an SEO investment?
Google itself says that you should give an SEO investment at least four months before you start seeing results. And those are the early, low-hanging fruit type of results. The full benefits of SEO can take anywhere from six months to a year or more.
How do I calculate the ROI of my SEO efforts?
The simple SEO ROI formula is: SEO ROI = (SEO revenue - SEO costs) / SEO costs. You can use Google Analytics to determine the revenue generated from organic search traffic and compare it to your SEO budget. Some SEO calculators also show the potential ROI based on your investment.
How much does SEO usually cost?
On average, SEO can cost between $250 to $10,000 per month. As evident, that's a really broad range. However, most businesses end up spending between $500 and $5,000 on SEO. Your SEO costs will depend on whether you've selected an agency or freelancer, the complexity of SEO services, the size of your website, your industry, and your SEO goals.
