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ERP Builders

ERP ROI calculator

Will an ERP pay for itself?

Enter conservative estimates for time saved, inventory and errors, plus the full cost of the project. The calculator shows payback and ROI using the method from our ERP ROI guide.
Yearly benefits
hrs
USD
USD
%
USD
USD
Costs
USD
USD
USD
Assumptions
%
years

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.