Sign ROI calculator

What does a sign
need to earn?

Put in your quote, your location's traffic, and your numbers. See the real monthly cost, what you pay per thousand people reached, and how many extra customers it takes to pay for itself.

Run your numbers

Start with the cost.
Then the break-even.

Defaults come from public data and are cited below. Replace any of them with your own figures; results update as you type and nothing you enter leaves this page.

01 The sign
Sign type

$

Installed price including permits. The default is only an example.

sq ft

Lit area, one face. Drives the electricity estimate.

hrs
yrs
¢/kWh

State commercial average[1]. Use your bill's rate if you know it.

$

Service plan, software, or insurance rider, if any.

02 The location
AADT

The road's annual average daily traffic[5]. Look it up on the your state DOT (FHWA directory).

National average vehicle occupancy[6].

%

An assumption, not a published figure: outdoor-media audits use a visibility adjustment for this but do not publish it. Lower it if the sign is set back, angled away, or competing with others.

mph

Used for the sign-size check[13].

03 Your business
$
%

What you keep from a sale after the cost of goods.

$
See your results

How it works

The method, in plain numbers.

Total cost of ownership

Project price + financing interest + (electricity + upkeep) × years of use − the optional first-year tax estimate. Electricity is face area × average watts × hours lit × 365 ÷ 1,000 × your rate. Financing uses a standard amortizing loan payment.

Break-even customers

Monthly cost of ownership ÷ (average sale × gross margin). It is the number of extra customers the sign has to bring in each month to pay for itself, with no assumption about how much sales will rise.

People reached and cost per 1,000

Daily traffic (AADT) × people per vehicle × the share who notice, over every day of the sign’s life. Total cost ÷ (views ÷ 1,000) gives a cost per thousand views you can compare with paid media.

Is it big enough?

From the United States Sign Council guidelines: viewing distance = speed × reaction time × 1.47; letter height (inches) = distance ÷ 30; sign area = (reaction time × speed)² ÷ 800 for a 30-letter message. A sign smaller than this is hard to read in time, whatever it costs.

Sources

Every number, traced.

15 public sources, each opened and checked. No sign-company marketing figures. Where only industry data exists, it is labelled.

Electricity & energy use

  1. Electric Power Monthly, Table 5.6.B: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State

    Commercial rates by state, January–July 2026 year to date (US average 13.97¢/kWh).

  2. Digital Billboard Energy Use in California

    LED display draw (16–51 W/sq ft at full white), dimming and content assumptions, LED lumen life.

  3. 2022 Nonresidential Sign Lighting (Title 24, Part 6, §140.8)

    Maximum allowed sign lighting power: 12 W/sq ft internally lit, 2.3 W/sq ft externally lit.

  4. Energy Savings Estimates of Light Emitting Diodes in Niche Lighting Applications

    Channel-letter LED strip draw (0.96 W/ft, ~150 ft per sign); 15-year average sign life.

Traffic & reach

  1. Traffic Monitoring Guide

    Definition of annual average daily traffic (AADT).

  2. Summary of Travel Trends: 2022 National Household Travel Survey, Table 5-2

    1.52 people per vehicle, all trip purposes.

  3. Glossary: Daily Effective Circulation; Visibility Adjustment Index

    Outdoor-media method for counting people passing a sign and adjusting for visibility.

Media cost benchmarks

  1. US Major Media CPM Comparison

    Median cost per 1,000 impressions for other media.

    Solomon Partners, distributed by OAAA · 2022 Trade-association data

    View source (US Major Media CPM Comparison, opens in a new tab)
  2. Notice 123: Price List (Every Door Direct Mail retail flats)

    $0.260 per piece postage.

Sales impact studies

  1. The Economic Impact of Exterior Electronic Message Boards

    2.1% first-year sales lift, 19 stores vs. 55 controls.

    University of Cincinnati Economics Center for the Signage Foundation · 2014 Industry-funded

    View source (The Economic Impact of Exterior Electronic Message Boards, opens in a new tab)
  2. The Economic Value of On-Premise Signage

    4.75% sales per additional sign (162 sites); ~5% typical lift from improved signs.

    University of San Diego for the Signage Foundation · 1997 Industry-funded

    View source (The Economic Value of On-Premise Signage, opens in a new tab)
  3. The Economic Value of On-Premise Signage

    About 60% of businesses that changed signs reported gains averaging about 10% (self-reported survey).

    University of Cincinnati Economics Center for the Signage Foundation · 2012 Industry-funded

    View source (The Economic Value of On-Premise Signage, opens in a new tab)

Sign sizing

  1. Best Practice Standards for On-Premise Signs

    Legibility index 30, reaction times, sign-area formula.

Tax treatment

  1. Publication 946: How To Depreciate Property

    Signs listed as Section 179 property; land improvements excluded.

  2. Revenue Procedure 2025-32, §4.24

    2026 Section 179 limit of $2,560,000.

This calculator is an estimate for planning, not a promise of results or financial, tax, or legal advice. Results depend on your location, sign design, local sign code, and business. Published sales-lift figures come from industry-funded studies and vary widely between businesses.

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