Software ROI Calculator

Software ROI = (tools replaced + value of time saved − software and setup costs) ÷ costs × 100. Time saved is hours a week × 52 × hourly cost. In the example: $9,000 + $18,200 a year in savings, after a 3-month switch, comes to $79,333 over 3 years. Minus $39,000 in costs is $40,333, or 103%.

The same way. Enter the yearly subscription as the price, even if you pay monthly. Add onboarding and data migration as setup cost. SaaS prices often rise at renewal, so if you expect a 10% increase, raise the price a little to cover it. Count per-seat costs for everyone who'll use it.

Most businesses look for payback within 12 months and an ROI over 100% across the contract. The example pays back in month 5 and returns 103% over 3 years. A tool with payback longer than its contract term is a hard case to make.

Show three numbers: total cost over the contract, total savings over the same time, and the payback month. Back each saving with evidence: current tool invoices for replaced costs, and timed tasks for hours saved. Include a cautious case with half the hours saved. The chart and table here give you all three.

Use the same method with more detail. Enter total license and support fees as the price, and implementation, consulting and training as setup. Switch-over often takes 6 to 12 months, so set it under More options. Count hours saved across every team, at each team's loaded hourly cost.

Use the full cost of the people whose time is saved: pay plus payroll taxes, benefits and overhead. That's often 20% to 40% above salary. Someone paid $60,000 a year costs about $36 an hour with overhead, based on 2,080 working hours.

Data migration, integrations with tools you keep, training time for every user, admin time to manage it, add-ons and usage fees, and price rises at renewal. Lost productivity during the switch is real too. The switch-over time in More options covers that by delaying the full savings.

Simple tools often pay back in 1 to 6 months. Larger systems such as ERP or CRM can take 1 to 2 years. The example pays back in month 5. The chart shows the running total and marks the month it turns positive.

Count them if the time will go to work that earns money or prevents a hire. If hours freed just disappear into the day, they aren't savings in cash terms. One low-case approach is to count half of the hours a tool saves. In the example, that drops ROI from 103% to 35%.

Run each one here with its own price, setup and expected savings over the same number of years. Compare net gain and payback month. A cheaper tool that saves fewer hours can still lose to a pricier one. Use the Copy link button to save each version and compare.