How can I calculate the ROI for my software investment?

How can I calculate the ROI for my software investment?

To calculate ROI, use the formula: (Net Profit / Cost of Investment) x 100. What specific software are you considering?

I'm looking at a project management tool that costs $10,000.

Great! What benefits do you expect from this tool? For example, time savings or increased productivity?

I expect to save about 200 hours a year, and each hour is worth $50.

That's a potential benefit of $10,000 per year. So, your ROI would be: (10,000 - 10,000) / 10,000 x 100 = 0%. You might want to consider additional benefits or cost savings.

What if I save 300 hours instead?

If you save 300 hours, that's $15,000 in value. Your new ROI would be: (15,000 - 10,000) / 10,000 x 100 = 50%. That's a much better return!