Procurement tools
ROI calculator
Turn a procurement initiative into a number a finance team will actually sign off on — cost in, gain out, ROI and payback in one line.
Formula
ROI = (Total Gain − Total Cost) ÷ Total Cost × 100
Inputs
Total investment cost
Everything spent to run this initiative
₹
Total gain / benefit
Savings, avoided cost or revenue generated
₹
Time period
Months over which the gain was earned
Return on investment
0%
Net benefit–
Payback period–
Annualised ROI–
Cost vs. gain
Include every cost that went into the initiative — not just the obvious spend, but implementation time, training and any transition disruption. Annualised ROI normalises the result to a 12-month basis, which makes projects of different durations easier to compare on the same footing.
Frequently asked questions
What is ROI in procurement?
ROI measures the net benefit an initiative generates relative to what it cost, expressed as a percentage: (gain minus cost) divided by cost, multiplied by 100.
What counts as gain in an ROI calculation?
Every measurable benefit over the period being measured — cost savings, avoided costs, additional revenue, or productivity gains converted into rupee terms.
What is a good ROI for a procurement project?
This varies by initiative, but many teams look for at least 15–20% ROI or a payback period under 18 months before prioritising a project.
Is this ROI calculator free to use?
Yes. It runs entirely in your browser, needs no account, and nothing you enter is stored or transmitted.