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ROI calculators
ROI
Increased productivity
Example
: Increase efficiency by 3 seconds for a given page.
# of Users:
500
Increase in Efficiency:
3 seconds / page (0.0008 hours)
Uses per Day:
50 times (Page access per day)
Improvement Cost:
10,000
Annual Salary:
30,000
Expected Project Life:
3 years
Future Gain from Improvement
= [500 x 50 x 230 x ( 30,000/1840 ) x 0.0008] * [(1+0.05)
3
- 1]/0.05 - 10,000(1+0.05)
3
= 224,861
Total Gain from Improvement
= 224,861.25/(1+ 0.05)
3
= 194,244
Annual Gain from Improvement
= 194,244 / 3 = 64,748
Annual ROI
= 64,748 / 10,000 = 6 : 1
Total ROI
= 194,244 / 10,000 = 19 : 1
* Work year = 230 work days / year; 8 hours workday = 1840 hours / year
Calculate Increased Productivity
# of Users:
Uses Per Day:
Days Per Year:
Work Hours Per Day:
Annual Salary:
Increase in Efficiency:
hrs
mins
secs
Improvement Cost:
Expected Project Life:
Year(s)
Total Gain from
Improvement ($)
Annual Gain from
Improvement ($)
Annual ROI
Total ROI
Compare ROIs
Scenario 1
Scenario 2
Scenario 3
# of Users:
Uses Per Day:
Days Per Year:
Work Hours Per Day:
Annual Salary:
Increase in Efficiency:
hrs
mins
secs
hrs
mins
secs
hrs
mins
secs
Improvement Cost:
Expected Project Life:
Year(s)
Year(s)
Year(s)
Total Gain from
Improvement ($)
Annual Gain from
Improvement ($)
Annual ROI
Total ROI
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