Estimate horizon cost, entered savings, net benefit, simple ROI, and payback for a supply chain software scenario.
Formula
const initialCost = Math.max(0, Number(inputs.initialSoftwareCost || 0)); const trainingCost = Math.max(0, Number(inputs.employeeTrainingCost || 0)); const recurringCost = Math.max(0, Number(inputs.annualRecurringCost || 0)); const annualSavings = Math.max(0, Number(inputs.enteredAnnualSavings || 0)); const years = Math.max(1, Number(inputs.analysisYears || 1)); const annualNetSavingsScenario = Math.round((annualSavings - recurringCost) * 100) / 100; const totalCostOverHorizon = Math.round((initialCost + trainingCost + recurringCost * years) * 100) / 100; const grossSavingsOverHorizon = Math.round((annualSavings * years) * 100) / 100; const netBenefitOverHorizon = Math.round((grossSavingsOverHorizon - totalCostOverHorizon) * 100) / 100; const simpleRoiPct = totalCostOverHorizon > 0 ? Math.round((netBenefitOverHorizon / totalCostOverHorizon * 100) * 100) / 100 : 0; const simplePaybackMonths = annualNetSavingsScenario > 0 ? Math.round(((initialCost + trainingCost) / (annualNetSavingsScenario / 12)) * 100) / 100 : 0; return { annualNetSavingsScenario, totalCostOverHorizon, grossSavingsOverHorizon, netBenefitOverHorizon, simpleRoiPct, simplePaybackMonths };Initial Software and Implementation Cost ($)
200,000
One-Time Employee Training Cost ($)
30,000
Annual Recurring Software Cost ($)
40,000
Entered Annual Savings ($)
150,000
Analysis Horizon (Years)
5
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With the default inputs, $150,000 of entered annual savings minus $40,000 of annual recurring cost produces $110,000 in annual net savings. Across 5 years, total entered cost is $430,000 and gross savings are $750,000, producing $320,000 in net benefit, 74.42% simple ROI, and a 25.09-month simple payback period.
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The estimate combines Initial Software and Implementation Cost ($), One-Time Employee Training Cost ($), Annual Recurring Software Cost ($) and returns Annual Net Savings Scenario, Total Cost Over Horizon, Gross Savings Over Horizon.
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This calculator provides coverage estimates based on the inputs provided. It does not constitute insurance advice, a policy quote, or a binding offer. Coverage terms, exclusions, and premiums vary by carrier and jurisdiction. Consult a licensed insurance agent or broker.
Reviewed by the CalculateThis.ai editorial team. Updates: check back for latest parameters. Tools are for estimation only — verify with current provider terms.