ERP ROI calculator
Will an ERP pay for itself?
ROI over 3 years
25%
Payback
28 months
- Labour saved per year
- $50,400
- Inventory carrying saved per year
- $30,000
- Total benefit per year
- $98,400
- Benefits over the period
- $250,920
- Costs over the period
- $200,000
Hard benefits only, using 48 working weeks a year. Soft benefits such as better decisions are left out on purpose. Use conservative inputs.
FAQ
Frequently asked questions
What is a typical ERP payback period?
It varies widely with scope and starting point. Many small and mid-sized projects pay back within two to three years when benefits are measured conservatively.
Why is year one lower?
Teams need time to adapt after go-live, so benefits ramp up. The calculator applies a year-one percentage you can change.
What is a loaded hourly cost?
Salary plus employer taxes, benefits and overheads, divided by working hours. It is usually well above the hourly wage.
What carrying cost should we use?
Storage, insurance, capital and obsolescence usually add up to 15–25% of inventory value per year.
Next step
Want a business case you can take to the board?
We will help you measure the baseline and build a realistic ERP business case.