B2B ROI Calculator
Calculate the true return on your business software, services, and tools by including both cost savings and productivity gains.
How the B2B ROI Calculator works
Enter investment costs, staff time saved, revenue impact, and timeline. Get your ROI percentage, payback period, and annual value created with all benefits counted.
B2B purchases often save time and boost efficiency, not just cut costs. This calculator captures everything-including hours saved-so you can justify investments with complete numbers.
How it works
Tutorial
When buying business software or services, the benefits extend beyond direct cost savings. You also gain time savings, fewer errors, and improved revenue. This tutorial shows you how to calculate ROI that includes all these benefits.
You can use the calculator above for automatic calculations, or follow this guide to do it manually with a step-by-step example.
The Formula
| Component | Formula |
|---|---|
| Total Investment | Software Cost + Setup + Training + Annual Fees |
| Annual Value Created | Cost Savings + Time Savings + Revenue Gains |
| ROI Percentage | ((Annual Value – Investment) ÷ Investment) × 100 |
Step-by-Step Calculation
Here’s how to calculate ROI for a business software purchase.
Step 1: Calculate Total First-Year Investment
Add up all costs to get started and run the software:
| Cost Item | Amount |
|---|---|
| Software License (Annual) | $24,000 |
| Setup and Implementation | $15,000 |
| Training | $8,000 |
| Staff Time During Setup | $6,000 |
| Total First-Year Cost | $53,000 |
Calculation:$24,000 + $15,000 + $8,000 + $6,000 =$53,000
Step 2: Calculate Annual Value Created
Add up all the benefits the software delivers each year:
| Benefit | Amount |
|---|---|
| Reduced Operating Costs | $18,000 |
| Time Saved (200 hours × $75/hour) | $15,000 |
| Fewer Errors and Rework | $8,000 |
| Additional Revenue Enabled | $25,000 |
| Total Annual Value | $66,000 |
Calculation:$18,000 + $15,000 + $8,000 + $25,000 =$66,000
Step 3: Calculate ROI
Find your return on investment:
| Step | Calculation | Result |
|---|---|---|
| Subtract investment from value | $66,000 – $53,000 | $13,000 |
| Divide by investment | $13,000 ÷ $53,000 | 0.2453 |
| Convert to percentage | 0.2453 × 100 | 24.53% |
Final Answer:Your B2B ROI is24.53%in the first year
What This Means
A 24.53% first-year ROI is strong. Year two typically shows even better returns because you won’t pay the $15,000 setup cost or $8,000 training cost again. With only the $24,000 annual license and $6,000 staff time ($30,000 total), your year-two ROI jumps to 120% ($66,000 ÷ $30,000 – 1 = 120%).
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