Productivity and technology investment · Free
ROI and payback period calculator
Before investing in software, a machine or an automation project, check how long it takes to pay for itself and what it leaves you afterwards.
Guide
What ROI is and how to calculate it
ROI (return on investment) measures how much money an investment gives back relative to what it cost. It is a percentage: 100% ROI means you got the investment back and made the same again.
Formula: ROI = (net gain − investment) ÷ investment × 100. The net gain is what the investment brings in minus what it costs to run over the period you are looking at.
Example: ROI of an automation project
A company invests €12,000 in connecting its online shop to its invoicing software. That saves around 60 hours of admin work a month, which at €25/h is €1,500. Maintenance costs €150 a month.
Net monthly benefit: 1,500 − 150 = €1,350. Payback: 12,000 ÷ 1,350 = 8.9 months. Over three years the net gain is 1,350 × 36 − 12,000 = €36,600, an ROI of 305%.
ROI or payback: which one to look at
Payback answers "when do I get my money back?", which is what most managers ask first. ROI answers "how much do I make in total?" and is useful for comparing investments.
A project can have a huge five-year ROI and still be a bad idea if it takes four years to pay back and your company can't wait that long, so it's worth looking at both.
Where the sums usually go wrong
Some people forget recurring costs (licences, maintenance, training) and count only the upfront price. The benefit also tends to get inflated, because if a tool saves hours that aren't then used for anything else, the real saving is smaller.
Most often, nobody measured first. If you don't know how much time your team spends on a task today, the ROI is a guess, and timing one normal week already gives you a decent baseline.
How it works
- Enter what the investment costs.
- Enter how much it saves or earns you each month and what it costs to run.
- See the month it pays back and the ROI at the end of the period.
Frequently asked questions
How is ROI calculated?
ROI = (return − investment) ÷ investment × 100. If you invest €10,000 and it returns €25,000 over three years, the net gain is €15,000 and the ROI is 150%.
What is the payback period?
The time an investment takes to return what it cost: the investment divided by the net monthly benefit. A €12,000 investment that saves €1,000 net a month pays back in 12 months.
What is a good ROI?
It depends on risk and timeframe. For software and automation projects in small and mid-sized companies, a payback of 12–24 months is a common target. If it takes more than three years, revisit the scope.
What should I enter as the monthly benefit?
Money that comes in or stops going out thanks to the investment: hours freed up (times their cost), errors avoided, new sales. If you are not sure, start with the savings calculator.
Does it account for inflation or interest?
No. It is a simple ROI, which is what most small businesses use to decide. For large, multi-year investments, calculate NPV and IRR as well.
Do you do this every day?
If you merge documents, prepare invoices or copy data between programs every day, that can be automated, and it's what we do.