Roi Calculator

ROI = (Net Benefit - Investment Cost) / Investment Cost x 100%

Net Benefit = Cost Savings + Revenue Increase + Productivity Gains (Value)
Investment Cost = Adoption Cost + Implementation Cost + Operating Cost + Switching Cost

TCO = Initial Cost + Operating Cost (N years) + Switching Cost + Hidden Costs

Initial Cost:
  - License/purchase fees
  - Implementation/customization
  - Data migration
  - Training costs

Operating Cost (annual):
  - Subscription/maintenance fees
  - Infrastructure costs
  - Administrative labor costs
  - Upgrade costs

Switching Cost:
  - Existing system termination
  - Parallel operation period costs
  - Productivity loss (learning curve)

Hidden Costs:
  - Downtime costs
  - Security incident risk
  - Regulatory non-compliance penalties

Payback = Total Investment / Monthly Net Benefit

Example:
  Investment: $1M
  Monthly savings: $125K
  Payback = $1M / $125K = 8 months

1. Labor cost savings
   Savings = Automated hours x Hourly rate x Headcount
   Example: 10 hrs/week x $50/hr x 20 people = $40K/month

2. Infrastructure savings
   Savings = (Current infra cost - New infra cost) x 12
   Example: ($50K/mo - $20K/mo) x 12 = $360K/year

3. Error cost reduction
   Savings = Error count x Cost per error x Reduction rate
   Example: 50/month x $1K x 80% = $40K/month

1. Conversion rate improvement
   Increase = Current revenue x Conversion rate uplift
   Example: $10M/month x 2% uplift = $200K/month

2. Churn reduction
   Increase = Churned customers x Customer value x Prevention rate
   Example: 100/month x $5K x 30% = $150K/month

3. Upsell/Cross-sell
   Increase = Target customers x Additional purchase rate x Average value

1. Time savings
   Value = Hours saved x Hourly rate x Headcount
   Example: 2 hrs/day x $50/hr x 50 people = $110K/month

2. Decision speed
   Value = Opportunity cost x Time reduction

3. Customer service efficiency
   Value = Processing time reduction per case x Case volume x Time value

Stage 1: Conservative Scenario
  - Reflects only minimum effects
  - "Even in the worst case, ROI is at least this much"
  - Pre-emptively lowers figures the customer might question

Stage 2: Base Scenario
  - Based on comparable customer cases
  - "ROI most customers experience"
  - Cites specific case studies

Stage 3: Optimistic Scenario
  - When full functionality is utilized
  - "ROI achievable after optimization"
  - Includes long-term value

1. Use customer data
   "Based on your current processing volume of X..."

2. Industry peer case studies
   "Measured over 18 months at a similarly sized manufacturer..."

3. State conservative assumptions
   "We've conservatively assumed a 50% adoption rate"

4. Cite third-party data
   "According to Gartner, the average ROI in this category is X%..."

5. Phased milestones
   "Month 3: Cost savings begin, Month 6: Break-even, Month 12: ROI 200%"

## ROI Analysis Summary

### Investment Cost (3-Year TCO)
| Item | Year 1 | Year 2 | Year 3 | Total |
|------|--------|--------|--------|-------|
| Initial Cost | | - | - | |
| Operating Cost | | | | |
| **Total** | | | | |

### Expected Benefits (Annual)
| Item | Calculation Basis | Year 1 | Year 2 | Year 3 |
|------|-----------------|--------|--------|--------|
| Cost Savings | | | | |
| Revenue Increase | | | | |
| Productivity | | | | |
| **Total** | | | | |

### ROI Summary
- 3-Year ROI: [N]%
- Payback: [N] months
- 3-Year Net Benefit: $[N]