Productivity ROI calculator

The figures below are an illustrative scenario. Replace them with assumptions you can support. Set any benefit you cannot estimate to zero.

Leadership time

People in the organisation

Decision-makers involved

Fully loaded cost per hour (£)

Hours per decision-maker, per week

Current decision timeline (weeks)

Proposed decision timeline (weeks)

Earlier value and lower risk

Annual net value of the initiative (£)

Exclude leadership time and productivity value counted elsewhere.

Financial impact of a wrong decision (£)

Current probability of a wrong decision (%)

Assumed reduction in that probability (%)

A 50% reduction takes a 25% probability to 12.5%. This is your assumption, not an INSO promise.

Productivity and investment

Average annual salary (£)

Assumed annual productivity improvement (%)

Use an organisation-wide average. Exclude gains already counted above.

Total proposed investment (£)

Include fees and internal implementation costs. The example is not a quote.

An example

Based on the illustrative assumptions shown. Recalculate after changing the inputs.

Modelled gross benefit£1,149,229

Leadership time: £28,800
Earlier initiative value: £307,929
Expected risk reduction: £62,500
Annual productivity value: £750,000
Net benefit after investment: £1,124,229
Benefit-to-cost multiple: 46×
Net ROI: 4,496.9%

A scenario to examine, not a forecast or guaranteed return. Staff capacity is not automatically a cash saving. Review overlap between benefits before using the total in a business case.

Formulas and assumptions

Weeks saved = current timeline − proposed timeline. A longer proposed timeline produces negative time and acceleration values.
Leadership time = decision-makers × hourly cost × weekly hours × weeks saved.
Earlier initiative value = annual net initiative value ÷ 12 × (weeks saved ÷ 4.33). This assumes value arrives evenly through the year.
Risk reduction = wrong-decision cost × current probability × assumed relative probability reduction.
Annual productivity value = people × average salary × assumed improvement. This values a full year of regained capacity.
Gross benefit adds these four estimates; net benefit subtracts investment. The multiple is gross benefit ÷ investment. Net ROI is net benefit ÷ investment × 100.
The total combines the decision period with one year of productivity value. It excludes discounting, tax and longer-term effects. Gains may overlap; use distinct benefits and consistent assumptions.

Only need to estimate time lost?

Use the project cost calculator

What are you working through?

Bring the scenario and the question behind it. We can work through what is realistic and where support could help.

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