ROI & payback
SaaS ROI calculator
Plug in a tool's monthly cost and the monthly value it returns, and see ROI %, annual net gain, and the break-even tipping point. Built for procurement defending a renewal to finance.
Simple ROI model. Assumes value-per-month is steady. For bursty value (e.g. seasonal sales tools), divide annual value by 12 first.
When this calculator helps
- Defending a SaaS renewal to finance or procurement.
- Modeling whether a higher-tier upgrade pays for itself.
- Comparing tool A vs tool B on a value-not-cost basis.
When to look elsewhere
- Tools where value is impossible to quantify (security, compliance, brand).
- Pilots under 30 days, too little data on actual value delivered.
- Bundled deals where individual-tool value can't be isolated.
Frequently asked questions
What ROI is good for a SaaS tool?
Procurement teams typically want 200%+ first-year ROI for new SaaS, and 100%+ for renewals. Lower than 50% is a strong signal to renegotiate or replace.
Should implementation cost be included?
Yes for year-1 ROI. Many tools pay back fine in year 2+ but year-1 ROI dies once you add migration, training, and integration consulting.
How do I estimate monthly value?
Three approaches: (1) hours saved × loaded labor cost, (2) revenue directly attributable to the tool, (3) cost of the next-best alternative (or zero tool) minus this tool's cost.