ROI Calculator
ROI on an operations automation project
A services business spends $120,000/year on a manual back-office process and expects $46,000/year of savings after a $38,000 build that takes 3 months.
Example inputs
- Current annual cost
- $120,000
- Estimated annual savings
- $46,000
- Implementation cost
- $38,000
- Time to implement
- 3 months
- Discount rate
- 10%
Return on Investment
263.2%
3-year ROI based on implementation cost vs. total savings
Payback Period
12.9 months
Time to recover initial investment
3-Year NPV
$69,489
Net present value at 10% discount rate
3-Year Total Savings
$138,000
Gross savings over 36 months
Net Benefit
$100,000
Total savings minus implementation cost
This investment shows a 263% ROI with a payback period of 12.9 months. The 3-year NPV is $69,489.
What it recommends
- EXCEPTIONAL IN THIS MODEL: 263% ROI means the modeled net benefit is $100,000 over 3 years. Validate the $46,000/year savings assumption before moving to approval.
- 13-month payback means you need $38,000 in available cash or financing for 2 year(s). Ensure your cash flow can absorb this without straining operations.
Show the decision trail (5 steps)
- 01Analyzed investment of $38,000 with 3 month implementation
- 02Calculated annual savings potential of $46,000
- 03Applied 10.0% discount rate for NPV calculation
- 04Projected 36-month cumulative benefit of $138,000
- 05Determined break-even at month 13
Why this matters: A full discounted-cash-flow model — 3-year ROI %, payback in months, break-even month, and risk-adjusted NPV at a 10% discount rate — computed from first principles in the browser.