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Return on Investment

The ROI - Return On Investment - express the efficiency of an investment. ROI calculates the costs and benefits of an investment.

With the purchase of a software, project managers receive orders from management to make an estimate of ROI. In this case, the return on investment is a measure of help in determining whether a specific software investment is worthwhile.

Calculate ROI

The calculation of the return on investment as a proportion can be done as follows:

ROI = " 1 / " expected " income / investment " costs " " x 100%.

When companies that have purchased software try to determine ROI, they generally don't exclusively look at direct monetary return. For example, when an old software is exchanged for a new one that doesn't fail and is faster than the previous one, this increases the job satisfaction of employees working with the software. Job satisfaction is one of the benefits of software, but it's difficult to express it in money. Unless due to job satisfaction there is a clear increase in efficiency and / or production. Each company has its own criteria to calculate the ROI.

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