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ROI

ROI. Need three data points: Time period Investment All costs involved in the project Return Cost savings plus revenue enhancements. ROI calculations. As a percentage [(return-investment/investment]*100 [($1million-$250,000)/$250,000]*100 = 300% As a ratio Return/investment

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ROI

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  1. ROI • Need three data points: • Time period • Investment • All costs involved in the project • Return • Cost savings plus revenue enhancements

  2. ROI calculations • As a percentage • [(return-investment/investment]*100 • [($1million-$250,000)/$250,000]*100 = 300% • As a ratio • Return/investment • $1million/$250,000 = 4:1 • As a time to break-even • (investment/return)*time period • ($250,000/$1million)*12 months = 3 months

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