ROI Calculator
Last updated
Last updated
The ROI (Return on Investment) Calculator is a tool designed to evaluate the financial impact of implementing a business solution. It measures cost reductions, productivity improvements, revenue generation, and risk avoidance to provide a comprehensive ROI value.
This section quantifies savings achieved by reducing resource utilization or task completion time.
Field Name
Description
Example Input
Resources required for task (No. of FTEs doing this task)
Total number of Full-Time Equivalents (FTEs) required for the task.
5
Average annual salary
Average yearly salary of each FTE performing the task.
$60,000
Time to do this task (Average % of time per person)
Proportion of time spent by an FTE on this task (as a percentage).
50% (0.5)
Time saved by product (% flow saves)
Percentage of time saved due to implementing the product/solution.
40% (0.4)
Cost of other resources (User licenses, etc.)
Additional costs incurred for resources such as software licenses.
$5,000
This section calculates the revenue growth driven by the solution.
Field Name
Description
Example Input
Annual revenue/turnover
Total yearly revenue of the business.
$1,000,000
Revenue increases (% increase in revenue)
Percentage growth in revenue attributed to the solution.
5% (0.05)
Saved revenue (% revenue losses avoided)
Percentage of revenue losses avoided by implementing the solution.
2% (0.02)
This section measures the financial savings from avoiding penalties and retaining revenue.
Field Name
Description
Example Input
Annual revenue/turnover
Total yearly revenue of the business.
$1,000,000
Fines avoided
Monetary penalties avoided due to improved compliance or processes.
$10,000
Lost revenue avoided (% revenue losses avoided)
Percentage of potential revenue losses prevented.
3% (0.03)
The Total ROI combines all calculated components: cost savings, revenue generation, and risk avoidance.