ROI Simulator

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ROI with honest assumptions

ROI stories sell internally until cash fails to arrive. Tie benefits to measurable baselines—hours saved × loaded wage, defect reduction × warranty cost—not wishful multiples.

Time horizon

Payback in eighteen months reads differently than ROI averaged over five years. State the window and when costs are incurred (year zero vs spread).

Sensitivity

Which input moves the outcome most? If ROI only works when conversion doubles, leadership needs that fragility on slide two, not in the appendix.

Not a commitment

Simulated ROI is a decision support memo. Capital allocation still needs governance, contracts, and post-implementation tracking against the original model.

FAQ

What ROI formula is used?
Common form: (Gain − Cost) ÷ Cost × 100%. Definitions of ”gain” vary—use consistent net figures after tax if your org standard requires it.
ROI versus IRR versus NPV?
ROI ignores time value of money unless you annualize. Larger capex with multi-year cash flows often needs discounted cash flow analysis, not simple ROI alone.
How conservative should I be?
Finance committees discount marketing-attributed lifts. Show base and downside; tying payback to contractual savings is more defensible than hoped viral growth.