Calculate the ROI of
productivity improvements

A simple, transparent method to estimate return on investment from productivity
gains in software development — before you commit your budget.

What You'll Get in Just 3 Minutes

What

A practical way to see whether a productivity initiative is likely to pay off—without spreadsheets or long finance reviews.

The ROI Calculator gives a clear, decision-ready view of the business impact from productivity initiatives in software delivery. It focuses on what matters to sponsors and teams: credible assumptions, comparable outcomes, and results you can share.

You’ll get:

  • Decision-ready metrics
    See the business impact in a format built for approvals.
  • Comparable views
    Acceleration for more output and Optimization for lower cost.
  • Transparent assumptions
    Every input is visible and easy to adjust.

How the method works

Methodology

Using your budget, team size, the affected slice, and a realistic Productivity Factor, the calculator shows two outcomes: A more output with the same team and B the same output at lower cost. Each outcome is set against your investment over the horizon you choose.

Inputs:

  • Program Cost
    Total one-time investment for the productivity initiative: licenses, implementation, training, and change management. Excludes regular ongoing payroll.
  • Productivity Factor
    Your expected uplift in productive work compared to today. Choose a realistic value for your context.
  • Years to Return
    The period you want to evaluate the impact over. Use the timeframe that matches your planning/budget cycle.
  • Total Development Budget
    The fully loaded annual budget for the team in scope (compensation and typical overhead).
  • Total Team Size
    Headcount of the team covered by the budget above (FTEs).
  • Affected Team Size
    People directly impacted by the initiative — the group whose day-to-day work will change.
  • Productive Work Factor
    The share of working time that becomes valuable output for the affected group, accounting for meetings, coordination, and other non-productive time.

Derived values

Affected Team Budget = (Total Development Budget ÷ Total Team Size) × Affected Team Size.  Portion of the annual budget associated with the affected team members.

Earned Value = Affected Team Budget × Productive Work Factor.  
Estimate of the dollar value of productive work delivered by the affected team per year.

Two views of impact

Scenario A — Acceleration (Same team, more output). Productivity increases Earned Value per year. Outputs: annual gain, cumulative profit, ROI, payback.

Scenario B — Optimization (Same output, lower cost). Productivity enables the same output with fewer affected FTEs and a lower affected budget. Outputs: annual savings, cumulative profit, ROI, payback.

How to Use the Calculator

process

Quick note (what happens here):In three short steps you’ll enter your assumptions, pick a scenario, and read the KPIs. No spreadsheets; your inputs stay visible so you can adjust and share.

Enter your inputs

Program Cost, Productivity Factor, Evaluation Horizon, and your team details

Tip: Start conservative—you can refine as you go.

Pick a scenario

Start with A (Acceleration); switch to B (Optimization) to compare.

Tip: A shows earned value gains; B shows cost savings.

Review the KPIs

ROI %, cumulative profit over the horizon, and payback.

Tip: As a quick rule of thumb, aim for ROI ≥ 150% or payback ≤ 12 months.

Estimate ROI with confidence

A transparent, scenario-based method for productivity investments in software delivery.

Enter your context once, compare Acceleration (more output) and Optimization (lower cost), and review a decision-ready summary you can share.

Program Cost ($)
Total investment (licenses, implementation, training, change)
Productivity Factor
Improvement multiplier (e.g., 1.2×, 1.5×, 2.0×)
Years to Return
Evaluation horizon
Total Development Budget ($)
Fully-loaded annual budget
Total Team Size
Total people in the team
Affected Team Size
People directly impacted by the initiative
Productive Work Factor (%)
Share of budget turning into valuable output (60–80% typical)
Scenario
Presets
Results
Annual Gain
—
Cumulative Profit
—
ROI
—
Payback
—

Have Questions? Send Us a Message

Get clear, practical answers — no sales pitch, no pressure.

Whether you need clarification on the program, want to explore specific use cases, or simply have a few technical questions — we’re available to answer them directly.

You’ll speak with a knowledgeable expert, not a sales rep.

Send Us a Message