Let Us Analyze ROI & Payback For You
ICEserver can have a significant positive financial impact on your company. Show your management team that ICE pays for itself in under a year and can actually make your company money while also providing you with attractive quality enhancements.
Return on Investment
Return on Investment or ROI is defined in terms a percentage. You should be familiar with this idea when it comes to savings account rates or 401k growth rates.
What does ROI really mean for a software product?
Wikipedia says: “ROI is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.”
The return on investment formula:
So, if the ICEserver saves you $30,000 per year and costs you $12,000, then the example would look like this:
$30,000 – $12,000 = $18,000 (net gain)
$18,000 (net gain) / $12,000 (product cost) = 150% ROI.
Payback
Payback is different. This is usually defined in terms of months. As in how many months will it take to recover – or payback – the initial investment? When you combine ROI and Payback, you can get an approximate snap shot of the possible financial implications of, in this case, implementing ICEserver.
The Payback formula looks like this:
So, if the ICEserver saves you $25,000.00 per year and costs you $9,990, then the example would look like this:
