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Procurement and vendor management ROI calculator
Enter your own figures to estimate what a procurement or vendor management tool could save, and how long it would take to pay for itself.
By Procurement VMS Editorial TeamLast updated
Before you calculate
A number you can defend beats a number that looks big
Finance directors have seen plenty of ROI slides built on hopeful percentages. What persuades them is a method they can check and inputs they recognize. This calculator uses only what you type in. It keeps the arithmetic visible, so you can show your working.
Your numbers
Your estimate
- Staff time saved per year
- 0 hours
- Value of staff time
- 0
- Savings on spend
- 0
- Net benefit after tool cost
- 0
- Payback
- Enter your numbers
Results appear as you type. Every figure comes from what you enter. We do not supply savings rates, because they vary widely. Use cautious estimates and ask finance to review them.
How to use it
Getting a defensible estimate
Count real purchase orders and invoices from the last three months, and time a few of them with a stopwatch. Use a loaded hourly cost, including benefits, that finance agrees with. Be careful with the savings percentage. Many teams get more from compliance and visibility than from price cuts, so use a small figure for price savings and a separate line for avoided leakage if you have evidence.
What the calculator leaves out
It does not include implementation effort, training, integration fees, price increases at renewal or the cost of change on your team. Add those to the tool cost for a fair picture.
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Questions
Frequently asked questions
What savings percentage should I use?
There is no honest default. Use your own baseline data, and test the result at half the figure.
Does it work in any currency?
Yes. Use one currency throughout.
Can I save my results?
Print the page or take a screenshot. The calculator does not store your numbers.