233.3333 is the example result. Read it using the units and relationship stated below.
Software Subscription ROI uses annual benefit, annual software cost.
Separating growth, retention and subscription capacity
For software subscription roi, the relationship is Result = (([Annual benefit] − [Annual software cost]) ÷ ([Annual software cost])) × 100. The amount depends on the supplied annual benefit, annual software cost, rather than a live market price or a value imported from another record. Recurring revenue should be compared across the same starting cohort. Expansion, contraction and churn change retention in different directions. Adding new customers to a retained-customer calculation can conceal losses in the original population.
What the model includes
Result = (([Annual benefit] − [Annual software cost]) ÷ ([Annual software cost])) × 100 Match the unit of the plan: users, seats, subscriptions and revenue are not interchangeable. A purchased seat can remain unused even when the invoice is fully paid. Annual prepayment also changes cash timing without changing monthly recurring value. Read the result beside the renewal schedule and account concentration. A short measurement window may miss seasonal usage or contracts that have not yet reached their renewal date.
Example with the supplied inputs
Annual benefit: 6000; Annual software cost: 1800. Result: 233.3333. The values are illustrative.
Compare one changed input
Annual benefit changes from 6000 to 6600. The result becomes 266.6667. All other inputs remain fixed.
Calculation rule
Result = (([Annual benefit] − [Annual software cost]) ÷ ([Annual software cost])) × 100
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Annual benefit | 6000 | Use the source quantity represented by annual benefit. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Annual software cost | 1800 | Use annual software cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 233.3333 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Annual benefit, Annual software cost. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Annual benefit on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 233.3333.
Change Annual benefit from 6000 to 6600 while keeping every other value fixed. The result becomes 266.6667. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.