Unlock the true value of your HR software with our intuitive ROI calculator. Quickly estimate the financial benefits from streamlining operations, boosting employee retention, and reducing administrative overhead. Make informed decisions for your HR tech stack.
Formula:
Total Annual Software Cost = Annual Subscription Cost + Annual Support Cost + (One-time Implementation Cost / Amortization Period)
Annual HR Admin Time Savings = (Current HR Admin Hours Per Week * (% Reduction in Admin Hours / 100) * 52 Weeks * Average Employee Hourly Wage)
Annual Recruitment Savings = (Total Employees * Current Turnover Rate * (% Reduction in Turnover Rate / 100) * Average Cost Per Hire)
Total Annual Benefits = Annual Admin Time Savings + Annual Recruitment Savings
Net Annual Financial Benefit = Total Annual Benefits - Total Annual Software Cost
ROI (%) = (Net Annual Financial Benefit / Total Annual Software Cost) * 100%
Payback Period = Total Annual Software Cost / Total Annual Benefits (in years)