Basic ROI Calculators

Return on Investment (ROI)

This financial metric tackles the question: "How do the expected returns from an investment offset the costs incurred in its implementation?".
ROI is traditionally applied to several financial metrics, including return on assets, return on capital employed, average rate of return, or simple rate of
return for a specific proposal, as demonstrated here.
In its simplest case, the investment with the higher ROI is the better option, however there are cautions attached to this statement.
ROI assumes the returns are based upon the data and costs in view. As with any model representing a complex system, the answer
will be an estimate based on certain assumptions that form consequential caveats. For example, these basic ROI models do not aim to quantify risk,
differing project lifetimes or differing returns per FY. The duration of projects here are based upon 1 year returns, so may provide significantly more ROI over the
lifetime of the project in subsequent years.
Revenue Model
The revenue model is the simplest, and asks the question: "What is the user revenue of this application?" This of course is the
sum of several sub-sets of user costs and returns, averaged over all users during a typical financial year. The client may
find this a useful visually illustrative way to justify performance tuning, based upon simple data inputs representing the average of more complex data.
The output graph displays the ROI depending on percentage improvement of the concurrency established on the application by tuning.
Perception Model
The perception model is based upon user experience and establishes a simple method to emulate user behaviour. It makes the assumption
that user load on the system is broken into 12 x 1hr segments, with 2 x peak load hours and 10 x average load hours. In reality we will
witness a continuous distribution, with the integral over time representing the total sessions during the day. We also make the assumption
that if the user experiences a response time > 8 s, 25% of users will quit the session and move on. In reality this will also be a
distribution, and could be modelled stochastically with more complex tools.
(blue bars). The model emulates reality with hourly
averages that total the integral under the curve but
does not show continuous data as in reality.
Perception Based Calculator
A typical daily load profile is illustrated (white line) and the model
Load vs Time
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ROI over 1FYk
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Improvement %
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Disclaimer
This spreadsheet is provided by IT Service Solutions Ltd. for demonstrative educational purposes only and no
warranty or claim of suitability for any other purpose is maintained. IT Service Solutions Ltd. will not be
responsible for the application or interpretation of results, the performance of this tool, or any consequences that
may arise from its use.
Permission to Copy and Distribute
IT Service Solutions Ltd. hereby grants permission for users to copy and distribute this spreadsheet tool,
only if this worksheet page, including the copyright notice above, is included intact.
This spreadsheet tool may not be sold.
Copyright 2007, Fortimax Ltd. All rights reserved.
Load vs Time
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Copyright 2004 Fortimax Ltd
Click to visit web site
This financial metric tackles the question: "How do the expected returns from an investment offset the costs incurred in its implementation?".
ROI is traditionally applied to several financial metrics, including return on assets, return on capital employed, average rate of return, or simple rate of
In its simplest case, the investment with the higher ROI is the better option, however there are cautions attached to this statement.
ROI assumes the returns are based upon the data and costs in view. As with any model representing a complex system, the answer
will be an estimate based on certain assumptions that form consequential caveats. For example, these basic ROI models do not aim to quantify risk,
differing project lifetimes or differing returns per FY. The duration of projects here are based upon 1 year returns, so may provide significantly more ROI over the
The revenue model is the simplest, and asks the question: "What is the user revenue of this application?" This of course is the
sum of several sub-sets of user costs and returns, averaged over all users during a typical financial year. The client may
find this a useful visually illustrative way to justify performance tuning, based upon simple data inputs representing the average of more complex data.
The output graph displays the ROI depending on percentage improvement of the concurrency established on the application by tuning.
The perception model is based upon user experience and establishes a simple method to emulate user behaviour. It makes the assumption
that user load on the system is broken into 12 x 1hr segments, with 2 x peak load hours and 10 x average load hours. In reality we will
witness a continuous distribution, with the integral over time representing the total sessions during the day. We also make the assumption
that if the user experiences a response time > 8 s, 25% of users will quit the session and move on. In reality this will also be a
(blue bars). The model emulates reality with hourly
averages that total the integral under the curve but
does not show continuous data as in reality.
Revenue Based Calculator
A typical daily load profile is illustrated (white line) and the model
This spreadsheet is provided by IT Service Solutions Ltd. for demonstrative educational purposes only and no
responsible for the application or interpretation of results, the performance of this tool, or any consequences that
<BACK>
REVENUE BASED ROI CALCULATOR
Enter the average user revenue of the application per FY 2,000 < Enter
Enter the maximum number of users that can currently use the system 250 < Enter
Enter the maximum number of users that need to be accomodated (SLA) 300 < Enter
Current Revenue projection per FY 500,000
Max. Estimate Revenue projection per FY (SLA) 600,000
Estimated additional revenue for minimum 10% scalability improvement 50,000
Estimated additional revenue to meet SLA 100,000
Additional number of users to meet SLA 50
Estimated minimum number of users added due to tuning 25
Tuning to minimum 10% improvement guarantee YES
< See Graph - Please Contact Us
Tuning in line with SLA or above YES
< See Graph - Please Contact Us
10% 10 10
400 1,960
SLA 20 60
CAN PERFORMTUNE PROVIDE ROI FOR THIS APPLICATION ?
500
1,000
1,500
2,000
2,500
ROI over 1FY k
.
0
0 100 200 300 400 500
Improvement %
<BACK>
PERCEPTION BASED ROI CALCULATOR
At what user load do transaction response times increase beyond >8s ?
From the number of sessions, what percentage of customers make a purchase ?
What is the average revenue of purchases in one session ?
What is the average concurrency value during a peak hour period ?
How many sessions in total are established on average per 12hr day ?
Average concurrency over each hour per 12hr day
Current revenue projection per FY
Max. estimated revenue projection per FY
PerformTune Cost
Estimated additional revenue for minimum 10% scalability improvement
Estimated additional revenue for SLA / Peak scalability improvement
Estimated minimum number of users added due to tuning
Additional users required to meet peak volumes with good response times
Tuning to minimum 10% improvement guarantee
Tuning to peak (or SLA) concurrency with <8s response times
10% 10 #VALUE!
400 #REF!
SLA #REF! #VALUE!
CAN PERFORMTUNE PROVIDE ROI FOR THIS APPLICATION ?
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
0 50 100 150 200 250 300 350 400
% Improvement
ROI over 1FY K
49275000
800 < Enter #
## 10
15.0% < Enter
# ## ## 49
100.0 < Enter
# ## ## 100
1,100 < Enter
# ## ## 150
12,000 < Enter
# ## ## 200
# ## ## 250
980 # ## ## 300
49275000 ## ## ## 350
65700000 # ## ## 400
POA
16425000
80
300
CONTACT US < ROI Inconclusive - Please Contact Us
YES < See Graph - Please Contact Us
CAN PERFORMTUNE PROVIDE ROI FOR THIS APPLICATION ?
400 450