AI ROI calculator

Before you pay for an AI tool, check whether the time it saves is worth more than it costs. This free AI ROI calculator turns the hours a tool saves each week into a monthly value, takes off the subscription, and adds the time it takes to set up and learn, to give the first-year net return and the return on cost.

The calculation uses only the figures you type. It does not connect to any tool, and nothing you enter is saved.

How to use this calculator

1. Enter Hours saved per week: the time the tool saves on the task, measured during a trial if you can.
2. Enter Hourly cost of that time: the hourly wage of the person whose time is saved, or what an hour of your own time is worth.
3. Enter Tool cost per month: the subscription for the people who will use it.
4. Enter Setup and training hours: the one-off time to set the tool up, learn it and write the rules for using it.
5. Select Calculate. To load the sample figures first, select Use example.

Formula and worked AI ROI example

Monthly time value = hours saved per week × hourly cost × 52 ÷ 12

Monthly saving = monthly time value − tool cost per month

First-year cost = tool cost × 12 + setup hours × hourly cost

First-year net return = yearly time value − first-year cost

Return on cost = first-year net return ÷ first-year cost × 100

Here are the sample values loaded by the Use example button:

Two hours a week at $20 is worth $2,080 over 52 weeks, or $173.33 a month. Taking off the $30 subscription leaves a monthly saving of $143.33. The first year costs $360 in subscriptions plus 10 setup hours at $20, or $560 in total, so the first-year net return is $2,080 − $560 = $1,520. That is a 271.43% return on cost.

Before you rely on the numbers

• Measure the hours. Time the task for a week before the trial and again during it. A guess of hours saved is the figure most likely to be wrong.
• Count the checking time. Reading and correcting AI drafts takes time too. Take it off the hours saved.
• Saved time only pays when it is used. An hour saved is worth its cost only if it goes to other work, such as serving customers or ordering stock.
• Include every cost. Add any per-person fees, add-ons or a higher plan you would need. Prices change, so check the tool's current pricing page.

Before a trial, work through the AI readiness checklist and set the rules with the AI policy template. To weigh a tool against a new hire, use the staff cost calculator.

Frequently asked questions

What is a good ROI for an AI tool?

Any return above zero means the time saved is worth more than the tool costs, at the figures you entered. A small or negative result means the tool needs to save more time, or cost less, to be worth keeping.

Why does the first year include setup hours?

Setting up a tool and learning to use it takes time that has a cost, even when the subscription is cheap. Later years usually cost only the subscription.

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