ROI - Calculator
ROI Calculator Feature for CHS Website
Overview
The ROI (Return on Investment) Calculator will allow users to evaluate their investment returns efficiently.
ROI Calculation for ERP Implementation
| Label | User Input | Calculated Input | Extra Notes |
|---|---|---|---|
| Cost of ERP | ₹2,00,000 | - | This is the initial investment for ERP implementation. |
| Inventory Carrying Cost | ₹50,00,000 (default) | ₹2,50,000 | A 5% reduction in carrying cost due to ERP implementation. |
| Reduction in Receivables | ₹50,00,000 (default) | ₹2,50,000 | A 5% reduction in outstanding receivables. |
| Number of Users | 50 (default) | - | Users need to input this value. |
| Cost per Hour | ₹150 (default) | - | Users need to input this value. |
| Total Hours Saved per Month | - | 10 hrs | This value is provided based on ERP benefits. |
| Total Hours Saved in a Year | - | 6,000 hrs | Formula: No. of Users × Monthly Saved Hours × 12 → 50 × 10 × 12 = 6,000 hrs |
| Increase in Employee Productivity | - | To be calculated | This should show the percentage of time saved. |
| Profit from Increased Productivity | - | ₹9,00,000 | Formula: Total Hours Saved in a Year × Cost per Hour → 6,000 × ₹150 = ₹9,00,000 |
| Contribution from Enhanced Sales Volume/New Business | - | ₹10,00,000 | This value will be prefilled based on expected business growth. |
| Net Savings Per Year | - | ₹24,00,000 | Formula: Inventory Carrying Cost Reduction + Reduction in Receivables + Profit from Increased Productivity + Contribution from Enhanced Sales → ₹2,50,000 + ₹2,50,000 + ₹9,00,000 + ₹10,00,000 = ₹24,00,000 |
| Average Savings Per Month | - | ₹2,00,000 | Formula: Net Savings Per Year / 12 → ₹24,00,000 / 12 = ₹2,00,000 |
| Annual ERP Crystal Subscription | - | ₹12,00,000 (for 50 users) | This is the cost of the ERP software subscription. |
| Payback Period (Months) | - | 6 Months | Formula: Annual ERP Subscription / Average Monthly Savings → ₹12,00,000 / ₹2,00,000 = 6 months |
Key Insights:
✅ ERP will pay for itself within 6 months!
✅ Significant cost savings on inventory, receivables, and increased productivity.
✅ Additional revenue from new business growth.