ROI Calculator

Sonary’s Software Return On Investment Calculator helps small and mid-sized businesses evaluate whether a particular software tool or service is worth the investment. Enter your expected cost and estimated revenue increase, and the calculator instantly shows your net return and ROI percentage.

No spreadsheets. No formulas to figure out. Just a clear, straightforward way to see the return on your business investments.

How to use the Software ROI Calculator

The tool is designed to be fast and straightforward. Here’s how to use it:

Step 1: Enter your investment cost

Type in what you plan to spend on the software or service. You can enter either a monthly or annual figure—the calculator has a toggle to switch between views.

• Example: You enter $5,000.

Step 2: Enter your expected revenue increase

Estimate how much extra revenue you expect this tool or service to generate for your business.

• Example: You enter $12,000.

Step 3: (Optional) Set your time period

Adjust the time slider to examine ROI over a specific period. This can help you plan both short-term and long-term returns.

• Example: You set 12 months.

Step 4: Review your results

That’s it! The calculator does the rest. You’ll see:

• Net Return ($) – Your profit after covering the cost.
• ROI (%) – Your return on investment as a percentage.
• ROI Meter – A visual that shows if your ROI is low, good, excellent, or exceptional.

Step 5: Switch between monthly and annual view

The toggle lets you easily switch between seeing your monthly or annual return, depending on how you plan your budget.

The calculator highlights and visualizes your results on the ROI meter, so you can quickly see if your return is breakeven, good, excellent, or exceptional.

Key terms you should know to use the calculator

Understanding a few basic terms will help you get the most out of this calculator. Here’s a quick glossary:

Investment cost

The amount you pay for the software or service you’re evaluating.

• Example: If your annual subscription is $5,000, your investment cost is $5,000.

Time period

How long you want to look at your ROI, usually measured in months.

• Example: You choose 12 months if you’re planning for the first year of use.

Expected revenue increase

The money you expect the software or service to help you generate.

• Example: A tool that helps bring in $12,000 more annually has an expected revenue increase of $12,000.

Net return ($)

How much profit you earn after covering the cost of the software or service.

• Formula: Net return = Expected revenue increase – Investment cost

ROI (%)

Your return on investment, shown as a percentage. This tells you how much you gain compared to what you spent.

• Formula: ROI = (Net return ÷ Investment cost) × 100

ROI meter

A visual gauge that shows where your ROI stands, from breakeven to exceptional, so you can quickly see the strength of your return.

How does it work? The ROI formula behind the calculator

Want to know precisely how this calculator works out your ROI? Here’s the formula it uses:

1. Calculate net return

First, the calculator calculates your net profit by subtracting your investment cost from your expected revenue increase.

Formula:
Net return = Expected revenue increase – Investment cost

Example:
$12,000 expected revenue – $5,000 investment = $7,000 net return

1. Calculate ROI percentage

Next, it calculates your return on investment as a percentage.

Formula:
ROI = (Net return ÷ Investment cost) × 100

Example:
$7,000 net return ÷ $5,000 investment = 1.4
1.4 × 100 = 140% ROI

1. Display the ROI visually

Finally, the calculator shows your ROI on a visual meter, so you can easily understand if your return is breakeven, good, excellent, or exceptional.

What’s a good ROI for software?

ROI can mean different things depending on your business goals, but here’s a simple guide to what most small and mid-sized businesses aim for when investing in software or services:

• 0% ROI — Breakeven. You’re earning just enough to cover your cost.
• 20% to 50% ROI — Good. Your software is delivering solid value.
• 50% to 100% ROI — Excellent. Your investment is paying off strongly.
• 100%+ ROI — Exceptional. You’re more than doubling your investment.

Many small businesses target at least a 30% ROI on software and service investments to feel confident that the tool adds value.

The calculator’s ROI meter helps you see where your return falls at a glance, making it easy to judge whether a software purchase is a smart move.

When should you use the Software ROI Calculator?

No matter the size of your business, every dollar counts, and choosing the right software and services can significantly impact your bottom line. The Software ROI Calculator helps you take the guesswork out of those decisions by acting as a return calculator, showing your net profit and ROI percentage. Use it like an investment growth calculator to project how a software tool could contribute to your bottom line.

Whether planning for growth, watching your budget, or comparing options, this tool gives you clear, data-backed insight. Here are the best times to use it:

1. When you’re evaluating a new tool or service

Before subscribing or buying, use the calculator to see if the numbers make sense. It can help you avoid spending on tools that won’t deliver value to your business.

1. When you’re comparing options

Trying to choose between different software vendors or service providers? Plug in the expected costs and benefits to see which offers the strongest ROI.

1. When your business goals change

If you’re aiming for growth, cutting costs, or launching new initiatives, re-run the numbers to ensure your software investments align with your strategy.

1. When you’re planning your budget

Include ROI estimates in your budgeting process to prioritize the tools and services that will deliver the best return on your spend.

Other useful Sonary calculators to try

The Software ROI Calculator is just one of Sonary’s toolkit to help small business owners make smarter, faster decisions. Here are some other tools worth checking out:

Break-Even Calculator

Want to know how much you need to sell to cover your costs? This tool helps you figure out your break-even point so you can price more strategically and plan for profitability.

Credit Card Processing Fee Calculator

Trying to understand what you’re really paying to accept credit cards? This calculator shows your total cost and effective rate to find the most cost-effective option for your business.

Employee Cost Calculator

Curious about the actual cost of adding a new team member? This tool helps you confidently budget down salary, benefits, and other expenses.

Pricing Strategy Calculator

Not sure how to price your products or services? This calculator walks you through pricing models to find the best fit for your market, margins, and growth plans.

Marketing Planner

Planning your next marketing campaign? This tool helps you estimate and align your marketing spend with your business goals.

These calculators work independently but are even more powerful when used together. Use them to build a clear financial picture for your business and make confident decisions at every stage.