ROI calculator

Technology ROI calculator

This calculator models ROI using transparent value drivers. It is designed to be validated with your team's data.

Educational use only. Not tax, legal, or investment advice.

Answer box: What is a technology ROI calculator

A technology ROI calculator estimates the financial impact of a technology initiative by modeling benefits (value drivers) and costs over time using explicit assumptions you can validate.

Start with a baseline so inputs map to real operational measures.
Separate one-time implementation costs from recurring run costs.
Stress test adoption and timing before sharing results.

Indexable methodology summary

The model computes annual benefits by summing value drivers such as labor efficiency savings, close acceleration savings, AP invoice processing savings, headcount avoidance, vendor spend savings, legacy systems retired, and optional working capital cash acceleration.

For working capital, the model uses the cash unlocked equation: (annual revenue divided by days in year) multiplied by DSO days improved.^[1]

For benchmarking definitions and calculation approaches for close and AP inputs, see APQC and IOFM.^[2]^[3]

Full formulas, definitions, and guardrails are documented on the methodologypage.

How to validate assumptionsConfirm baseline cycle times and volumes using reports and system logs.Use conservative assumptions first, then refine with process owners.Document the source and rationale for each major input.See also the ROI framework

Key definitions (quick links)

ROI: A ratio that depends on the time window and what you count as costs and benefits.
Payback: The time for cumulative benefits to recover initial investment.
NPV: Discounted value of expected future cash flows.
DSO: A receivables timing measure used for working capital modeling.

Close & Compliance

Hours saved per close

hrs

Average hours saved each close cycle

Hourly rate

Blended hourly rate for finance/ops staff

Closes per year

Monthly closes typically = 12

Audit prep hours saved

hrs

Annual hours saved on audit prep

Operations & AP

Annual revenue

Total annual revenue

Minutes saved per invoice

min

Average minutes saved per invoice processed

Invoices per year

Annual invoice volume

Labor rate for AP

Hourly cost for AP processing roles

Finance Team & Headcount

Finance staff count

FTEs in finance team

Annual labor rate per FTE

Fully loaded annual cost per finance FTE

Productivity improvement %

Percent productivity lift for finance team

Productivity realization %

Portion that becomes measurable savings

Avoided hires

Headcount avoided through automation

Fully loaded cost per employee

Annual cost per avoided hire

Spend & Cash Flow

Annual vendor spend

Total yearly vendor spend

Spend improvement %

Percent savings on vendor spend

Days per year for cash flow

days

Default 365; use 260 only if appropriate

Days improved (DSO)

days

DSO days accelerated

Risk reduction score

Qualitative score (0-5)

Risk proxy value per point

Optional $ value per score point

Revenue per day (auto)

Derived from annual revenue / days per year.

Systems & Margin

Legacy software costs

Annual legacy software spend

IT server costs

Annual infra + server costs

New system recurring costs

Annual subscription and ongoing services

Implementation cost (one-time)

Upfront cost for implementation and change management

Discount rate (WACC)

Used for 3-year NPV

Gross margin improvement %

Percent improvement to gross margin

Annual gross margin

Gross margin dollars per year

Reduced IT maintenance/support

Annual IT support cost reduction

Total Annual Net Value

Payback Period (months)

0.0

Three-Year Cumulative Net Value

Three-Year NPV

Hours Saved per Year

Efficiency % of Revenue

0.0%

Financial Impact

Efficiency Gains

Risk Reduction

Strategic Enablement

ROI Bar Chart available in browser

ROI Line Chart available in browser

Campbell Technology Advisors

ROI Summary Report

Total Annual Net Value

Payback Period (months)

0.0

Three-Year Cumulative Net Value

Three-Year NPV

Hours Saved per Year

Efficiency % of Revenue

0.0%

Drivers

Annual ROI by driver

Close and finance efficiency

AP process efficiency

Vendor spend optimization

Working capital acceleration

Interpretation

Commentary

This report summarizes the current inputs and modeled outputs.

Validate the largest assumptions first and rerun the model with downside scenarios.

Driver	Annual ROI
Close and finance efficiency	$0
AP process efficiency	$0
Vendor spend optimization	$0
Working capital acceleration	$0

Year	Cumulative ROI
Year 1	$0
Year 2	$0
Year 3	$0

Annual revenue

Annual gross margin

New system recurring costs

Implementation cost (one-time)

Discount rate (WACC)

Finance team size

Days per year (DSO)

365

DSO days improved

Written and reviewed by Randy Kardas, CPA, CITP, CGMA, MBA

Randy is an accounting and finance professional focused on technology ROI modeling, business case development, and practical analysis that finance teams can validate.

Learn more about the author

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Last updated2025-12-12How we keep this current

Sources used on this page

JPMorgan: DSO and DPO: how they can improve your cash flow
Definitions and practical framing for receivables and payables cycle metrics and cash flow impact.
Accessed 2025-12-12
APQC: Cycle time to perform monthly close
Benchmark definitions and cycle-time framing for the close process. Specific benchmark values vary by dataset and may be gated.
Accessed 2025-12-12
IOFM: Determining the cost to process an invoice
Methodology guidance for calculating invoice processing cost and what to include. Some details may require a subscription.
Accessed 2025-12-12