Technology Economics: Budget, ROI and TCO
Fictional: evaluating a service-management platform investment. All figures are illustrative.
ROI & TCO calculator
Illustrative values — edit them100,000 + 25,000 + 20,000 × 5
60,000 × 5
Total benefit − total cost
Net benefit ÷ total cost × 100
(Initial + implementation) ÷ (annual benefit − annual operating cost)
Cost savings
Cash no longer spent — can reduce a budget.
Cost avoidance
Future cost prevented — report separately, not a budget cut.
Time savings
Hours freed — a benefit only if the time is redeployed.
Simple undiscounted model. “Annual expected benefit” may mix the three benefit types above — classify them before using any figure in a budget. All numbers are illustrative, not actual savings or client outcomes.
A transparent model that shows total cost, net benefit, ROI and payback from editable assumptions — and separates cash savings from cost avoidance.