SourceTier

Template

ROI model (spreadsheet)

Use the CSV next to this page or the online calculator (/tools/roi). Every input is yours; the sheet applies the formulas below and nothing else.

| Input | Value | Unit | | --- | --- | --- | | Purchase orders per year | | count | | Minutes of manual work per PO today | | min | | Share of that work removed | | 0..1 | | Invoices per year | | count | | Minutes of manual work per invoice today | | min | | Share of that work removed | | 0..1 | | Fully loaded cost per hour | | currency | | Addressable spend per year | | currency | | Share outside contracts (maverick) | | 0..1 | | Price premium on maverick spend | | 0..1 | | Share of maverick spend brought under contract | | 0..1 | | Annual software cost | | currency | | One-off cost | | currency |

Formulas: hours saved = count x minutes / 60 x share removed; time saving = hours x cost per hour; maverick saving = spend x share x premium x share brought under contract; net annual = savings - annual cost; payback months = one-off / net annual x 12.