AI ROI Calculator Template
Use Case Name: _________________________________
Date: _________________________________
Calculated By: _________________________________
Instructions
This template helps you calculate the Return on Investment (ROI) for your AI use case. Fill in all sections to get an accurate picture of financial viability.
Key Principles:
- Be conservative with benefit estimates
- Include ALL costs (hidden costs add up)
- Calculate risk-adjusted scenarios
- Payback period should be <18 months for most use cases
Section 1: Annual Benefit Calculation
What will be saved or earned per year?
Benefit 1: Cost Savings
Description: _________________________________
Current Annual Cost:
- Time cost: _____ hours × €_____ / hour = €_____ / year
- Money cost: €_____ / year
- Error cost: €_____ / year
- Total Current Cost: €_____ / year
Expected Reduction:
- Time savings: % → € / year
- Money savings: % → € / year
- Error reduction: % → € / year
- Total Savings: €_____ / year
Benefit 2: Revenue Increase
Description: _________________________________
Current Annual Revenue: €_____ / year
Expected Increase:
- Revenue lift: % → € / year
- New revenue streams: €_____ / year
- Total Revenue Increase: €_____ / year
Benefit 3: Productivity Gains
Description: _________________________________
Current Productivity:
- Tasks per person per day: _____
- Cost per task: €_____
Expected Improvement:
- Productivity increase: _____%
- Tasks per person per day: _____
- Cost per task: €_____
- Total Productivity Gain: €_____ / year
Benefit 4: Other Benefits
Description: _________________________________
Value: €_____ / year
Total Annual Benefit
| Benefit Type | Annual Value |
|---|---|
| Cost Savings | €_____ |
| Revenue Increase | €_____ |
| Productivity Gains | €_____ |
| Other Benefits | €_____ |
| TOTAL ANNUAL BENEFIT | €_____ |
Section 2: Implementation Cost (One-Time)
Development Costs
Team Costs:
- Data Scientist/ML Engineer: _____ weeks × €_____ / week = €_____
- Software Engineer: _____ weeks × €_____ / week = €_____
- Product Manager: _____ weeks × €_____ / week = €_____
- QA/Testing: _____ weeks × €_____ / week = €_____
- Total Team Cost: €_____
External Costs:
- Consultants: €_____
- Training: €_____
- Total External Cost: €_____
Infrastructure Setup
Cloud/Infrastructure:
- Initial setup: €_____
- Data migration: €_____
- Integration work: €_____
- Total Infrastructure Setup: €_____
Tools & Licenses
Software/Tools:
- ML Platform: €_____
- Development tools: €_____
- Monitoring tools: €_____
- Total Tools & Licenses: €_____
Other One-Time Costs
Description: _________________________________
Cost: €_____
Total Implementation Cost
| Cost Category | Amount |
|---|---|
| Development (Team) | €_____ |
| Development (External) | €_____ |
| Infrastructure Setup | €_____ |
| Tools & Licenses | €_____ |
| Other One-Time Costs | €_____ |
| TOTAL IMPLEMENTATION COST | €_____ |
Section 3: Operating Cost (Ongoing, Per Year)
Infrastructure Costs
Cloud/Infrastructure:
- Compute: €_____ / month × 12 = €_____ / year
- Storage: €_____ / month × 12 = €_____ / year
- Networking: €_____ / month × 12 = €_____ / year
- Total Infrastructure: €_____ / year
LLM/API Costs:
- API calls: €_____ / month × 12 = €_____ / year
- Token costs: €_____ / month × 12 = €_____ / year
- Total LLM/API: €_____ / year
Team Costs (Ongoing)
Maintenance Team:
- ML Engineer (0.5 FTE): €_____ / year
- Software Engineer (0.5 FTE): €_____ / year
- DevOps (0.25 FTE): €_____ / year
- Total Team Cost: €_____ / year
Tools & Licenses (Ongoing)
Annual Subscriptions:
- ML Platform: €_____ / year
- Monitoring tools: €_____ / year
- Development tools: €_____ / year
- Total Tools & Licenses: €_____ / year
Other Operating Costs
Description: _________________________________
Cost: €_____ / year
Total Operating Cost (Per Year)
| Cost Category | Annual Amount |
|---|---|
| Infrastructure | €_____ |
| LLM/API Costs | €_____ |
| Team (Ongoing) | €_____ |
| Tools & Licenses | €_____ |
| Other Operating Costs | €_____ |
| TOTAL OPERATING COST | €_____ / year |
Section 4: ROI Calculation
Year 1 (Implementation Year)
Annual Benefit: €_____
Less:
- Implementation Cost: €_____
- Operating Cost (Year 1): €_____
Year 1 Net: €_____ - €_____ - €_____ = €_____
Year 1 ROI: (€_____ / €) × 100 = **%**
Year 2 (First Full Year)
Annual Benefit: €_____
Less:
- Operating Cost: €_____
Year 2 Net: €_____ - €_____ = €_____
Cumulative (Years 1-2): €_____ + €_____ = €_____
Year 3
Annual Benefit: €_____
Less:
- Operating Cost: €_____
Year 3 Net: €_____ - €_____ = €_____
Cumulative (Years 1-3): €_____ + €_____ + €_____ = €_____
Payback Period
Total Investment: €_____ (Implementation + Year 1 Operating)
Annual Net Benefit (after Year 1): €_____ / year
Payback Period: €_____ / €_____ = _____ months
Target: <18 months
Decision:
- ✅ PASS: Payback <18 months
- 🟡 REVIEW: Payback 18-24 months
- ❌ FAIL: Payback >24 months
Section 5: Risk-Adjusted Scenarios
Best Case (120% of projected benefit)
Annual Benefit: €_____ × 1.2 = €_____ / year
Year 1 Net: €_____ - €_____ - €_____ = €_____
Payback Period: _____ months
Base Case (100% of projected benefit)
Annual Benefit: €_____ / year
Year 1 Net: €_____ - €_____ - €_____ = €_____
Payback Period: _____ months
Conservative Case (80% of projected benefit)
Annual Benefit: €_____ × 0.8 = €_____ / year
Year 1 Net: €_____ - €_____ - €_____ = €_____
Payback Period: _____ months
Worst Case (50% of projected benefit)
Annual Benefit: €_____ × 0.5 = €_____ / year
Year 1 Net: €_____ - €_____ - €_____ = €_____
Payback Period: _____ months
Still Positive? [ ] Yes [ ] No
Decision:
- ✅ PASS: Even worst case is positive
- 🟡 REVIEW: Worst case is negative, but base case is positive
- ❌ FAIL: Base case is negative
Section 6: Sensitivity Analysis
What if costs are 20% higher?
Implementation Cost: €_____ × 1.2 = €_____
Operating Cost: €_____ × 1.2 = €_____ / year
Year 1 Net: €_____ - €_____ - €_____ = €_____
Payback Period: _____ months
Still Positive? [ ] Yes [ ] No
What if benefits are 20% lower?
Annual Benefit: €_____ × 0.8 = €_____ / year
Year 1 Net: €_____ - €_____ - €_____ = €_____
Payback Period: _____ months
Still Positive? [ ] Yes [ ] No
Section 7: Comparison with Alternatives
Alternative 1: Do Nothing
Cost: €_____ / year (current cost of problem)
Benefit: €0
Net: -€_____ / year
Alternative 2: Simpler Solution (Rules/Automation)
Implementation Cost: €_____
Operating Cost: €_____ / year
Annual Benefit: €_____ / year
Year 1 Net: €_____
Payback Period: _____ months
Alternative 3: AI Solution (This Proposal)
Implementation Cost: €_____
Operating Cost: €_____ / year
Annual Benefit: €_____ / year
Year 1 Net: €_____
Payback Period: _____ months
Recommendation
Best Option: [ ] Do Nothing [ ] Simpler Solution [ ] AI Solution
Why?
Final ROI Summary
| Metric | Value |
|---|---|
| Total Annual Benefit | €_____ |
| Total Implementation Cost | €_____ |
| Total Operating Cost (Year 1) | €_____ |
| Year 1 Net | €_____ |
| Year 1 ROI | _____% |
| Payback Period | _____ months |
| Worst Case Still Positive? | [ ] Yes [ ] No |
Decision
ROI Assessment:
- ✅ PASS: Positive ROI, payback <18 months
- 🟡 REVIEW: Positive ROI, payback 18-24 months
- ❌ FAIL: Negative ROI or payback >24 months
Recommendation:
- ✅ GO: Proceed with implementation
- 🟡 POC: Run proof-of-concept to validate assumptions
- ❌ STOP: Not financially justified
Reasoning:
Approved By
- Finance Lead: _________________ Date: _______
- Business Owner: _________________ Date: _______
- Technical Lead: _________________ Date: _______
- AI Architect: _________________ Date: _______
Note: This template can be converted to Excel/Google Sheets for easier calculation. Use formulas to automate calculations.