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FOUR WAYS TO CALCULATE ROI
Method Answers the question…
Units sold
Payback Period Months or years
Dollars
Percentage
For some people working with numbers can be intimidating. But if you’ve identified and clarified the business need, gathered the right team, and pressure-tested your assumptions with your subject-matter experts, this part won’t be hard. In fact, in most cases, Excel does the calculations for you. Your job is to gather the right numbers.
Before you calculate the return on investment, you’ll need to accurately project costs and benefits. Use the next worksheet, "Costs & Benefits" to capture those numbers, replacing the example numbers with your own.
Then use one of the other worksheets to calculate the ROI for your project. The numbers you enter into the "Cost & Benefits" will auto-populate into the ROI worksheets (except for Type 0 and Type 1 Payback). If you're not sure which ROI approach to use, reference the chart below.
For more information in the HBR Guide to Building Your Business Case, read:Chapter 9: Estimate Costs and BenefitsChapter 10: Calculate ROI
Expressed in…
Breakeven Analysis
How many sales do we need to recoup the investment?
How long will it take to recoup the investment?
Net Present Value (NPV)
How much is this project worth to the business?
Internal Rate of Return (IRR)
What rate of return will this project deliver over its lifecycle?
Typically used for…
Projects with large expenditures
For some people working with numbers can be intimidating. But if you’ve identified and clarified the business need, gathered the right team, and pressure-tested your assumptions with your subject-matter experts, this part won’t be hard. In fact, in most cases, Excel does the calculations for you.
Before you calculate the return on investment, you’ll need to accurately project costs and benefits. Use the next worksheet, "Costs & Benefits" to capture those numbers, replacing the example
Then use one of the other worksheets to calculate the ROI for your project. The numbers you enter into the "Cost & Benefits" will auto-populate into the ROI worksheets (except for Type 0 and Type 1 Payback). If you're not sure which ROI approach to use, reference the chart below.
HBR Guide to Building Your Business Case, read:
Market-focused projects, such as product development; entrepreneurial endeavors
Projects with a heavy upfront investment, such as facilities projects; productivity projects that accumulate benefits over time
Projects that the company reports on externally, especially those that require you to borrow money
Costs and Benefits Worksheet
Project Investment
Capital Expenditures Amount 0 1
Diseño $ 5,000 $ 5,000 $ -
Desarrollo $ 10,000 $ 10,000
Total Capital Costs $ 15,000
Project Expense (Onetime Expense)
Compra de dominio (5 años) $ 2,500 $ 2,500
Compra de Servidor $ 3,200 $ 3,200
Total Project Expense $ 5,700
Total Project Investment $ 20,700 $ 20,700 $ -
Operating Costs (OpEx) Amount 0 1
Mantenimiento $ 6,200 $ 1,200
Rediseño $ 7,500
Total Operating Costs $ - $ 1,200
Project Benefits (amount & timing) Amount 0 1
Incremento de Ventas $ 175 $ 8,000
Disminución de costos $ 85 $ 5,000
Total Benefits $ - $ 13,000
Annual Total $ (20,700) $ 11,800
Cumulative Total $ (20,700) $ (8,900)
• Use this worksheet to capture your costs and benefits. Then, use one of the worksheets on the tabs below to calculate ROI.• Typically when filling out this worksheet, each column represents a calendar year with the first column being the current year.• List your costs and benefits by deleting the category names below and adding your own (mouse over the red triangle for a quick explanation of categories). The information you enter on this page will auto-populate onto the ROI worksheets (except for Type 0 and Type 1 Payback).• Insert rows as needed for each cost or benefit category. If you add rows, you will need to do the same on the ROI calculation worksheets. Inserted rows will not auto-populate onto other worksheets until you copy the formulas from a similar row. • Include the total or annual amount in Column F and then spread the costs into appropriate years. Make sure to check the estimated total in column F against the summed total in column Q.• In the Project Investment & Operating Cost categories, enter project costs as "positive" numbers, the spreadsheet will convert those to costs.• In the Project Benefits categories, enter benefits as "positive" numbers and any off-setting costs or losses as "negative" numbers. • In Column S note the rationale, any assumptions you've made, and the source for each number. • For more information in the HBR Guide to Building Your Business Case, read Chapter 9: Estimate Costs and Benefits.
2 3 4 5 Cal Year Cal Year Cal Year
$ - $ - $ - $ - $ - $ - $ -
2 3 4 5 Cal Year Cal Year Cal Year
$ 2,000 $ 1,500 $ 1,500 $ 2,000
$ 7,500
$ 2,000 $ 9,000 $ 1,500 $ 2,000 $ - $ - $ -
2 3 4 5 Cal Year Cal Year Cal Year
$ 7,500 $ 7,650 $ 7,803 $ 7,959
$ 5,000 $ 5,000 $ 5,000 $ 5,000
$ 12,500 $ 12,650 $ 12,803 $ 12,959 $ - $ - $ -
$ 10,500 $ 3,650 $ 11,303 $ 10,959 $ - $ - $ -
$ 1,600 $ 5,250 $ 16,553 $ 27,512 $ 27,512 $ 27,512 $ 27,512
Use this worksheet to capture your costs and benefits. Then, use one of the worksheets on the tabs below to calculate ROI.Typically when filling out this worksheet, each column represents a calendar year with the first column being the current year.List your costs and benefits by deleting the category names below and adding your own (mouse over the red triangle for a quick explanation of categories). The information you enter on this page will
auto-populate onto the ROI worksheets (except for Type 0 and Type 1 Payback).Insert rows as needed for each cost or benefit category. If you add rows, you will need to do the same on the ROI calculation worksheets. Inserted rows will not auto-populate onto other worksheets
Include the total or annual amount in Column F and then spread the costs into appropriate years. Make sure to check the estimated total in column F against the summed total in column Q.In the Project Investment & Operating Cost categories, enter project costs as "positive" numbers, the spreadsheet will convert those to costs.In the Project Benefits categories, enter benefits as "positive" numbers and any off-setting costs or losses as "negative" numbers. In Column S note the rationale, any assumptions you've made, and the source for each number.
HBR Guide to Building Your Business Case, read Chapter 9: Estimate Costs and Benefits.
Estimate Rationale
Cal Year Total
$ 5,000
$ 10,000
$ -
$ 2,500
$ 3,200
$ -
$ - $ 20,700
Cal Year Total
$ 8,200
$ 7,500
$ -
$ - $ 15,700
Cal Year Total
$ 38,912
$ 25,000
$ -
$ - $ 63,912
$ -
$ 27,512
List your costs and benefits by deleting the category names below and adding your own (mouse over the red triangle for a quick explanation of categories). The information you enter on this page will
Insert rows as needed for each cost or benefit category. If you add rows, you will need to do the same on the ROI calculation worksheets. Inserted rows will not auto-populate onto other worksheets
Make sure to check the estimated total in column F against the summed total in column Q.
Breakeven Analysis
Project Investment
Capital Expenditures Amount
Diseño $ 5,000
Desarrollo $ 10,000
0 $ -
Total Capital Costs $ 15,000
Project Expense (Onetime Expense)
Compra de dominio (5 años) $ 2,500
Compra de Servidor $ 3,200
0 $ -
Total Project Expense $ 5,700
Total Project Investment $ 20,700
Operating Costs (OpEx) Amount
Mantenimiento $ 6,200
Rediseño $ 7,500
0 $ -
Total Operating Costs
Project Benefits (amount & timing) Amount
Incremento de Ventas $ 175
Disminución de costos $ 85
0 $ -
Total Benefits
• Entries will auto-populate from the "Cost & Benefits" worksheet. • If you added rows to the "Cost & Benefit" Worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.• Breakeven analysis does not require that the costs and benefits be spread over some number of years. • Instructions for calculating are at the bottom of this spreadsheet.• For more information in the HBR Guide to Building a Business Case, read the "Breakeven analysis" section in Chapter 10: Calculate ROI.
To calculate:1) First determine the gross profit margin from selling one unit of your product: Revenue - COGS = gross profit margin. 2)Then determine the net project cost by adding an annual increment of the operations costs (Row 21) to total project investment (Row 15). 3) With those numbers calculate how many units you need to sell for your sales benefits to equal your net costs: Units sold = net project cost/gross profit marginRound the units sold up to a whole number; this is how many units you need to sell to break even.4) For an example of a Breakeven Analysis calculation, see the XYZ Energy ROI or ABC MedTech ROI documents.
Estimate Rationale
Entries will auto-populate from the "Cost & Benefits" worksheet. If you added rows to the "Cost & Benefit" Worksheet you must add the rows to this sheet also, and
copy the data from the "Cost & Benefits" Worksheet into this worksheet.Breakeven analysis does not require that the costs and benefits be spread over some number of
Instructions for calculating are at the bottom of this spreadsheet.HBR Guide to Building a Business Case, read the "Breakeven analysis"
from selling one unit of your product:
by adding an annual increment of the operations costs (Row 21)
3) With those numbers calculate how many units you need to sell for your sales benefits to equal your
Units sold = net project cost/gross profit marginRound the units sold up to a whole number; this is how many units you need to sell to break even.4) For an example of a Breakeven Analysis calculation, see the XYZ Energy ROI or ABC MedTech
Type 0 Payback
Project InvestmentCapital Expenditures Amount Project Year 1Diseño $ 5,000 Desarrollo $ 10,000 0 $ - Total Capital Costs $ 15,000 Project Expense (Onetime Expense)Compra de dominio (5 años) $ 2,500 Compra de Servidor $ 3,200 0 $ -
Total Project Expense $ 5,700
Total Project Investment $ 20,700 $ - $ -
Operating Costs (OpEx) Amount Project Year 1Mantenimiento $ 6,200 Rediseño $ 7,500 0 $ -
Total Operating Costs $ - $ -
Project Benefits (amount & timing) Amount Project Year 1Incremento de Ventas $ 175 Disminución de costos $ 85 0 $ -
Total Benefits $ - $ -
Annual Total $ - $ - Cumulative Total $ - $ -
• NOTE: For an explanation of the difference between Type 0 and Type 1 Payback calculations, read the "Payback" section in Chapter 10: Calculate ROI, in the HBR Guide to Building Your Business Case. Also, please note that only the "Amount" data auto-populates from the "Cost & Benefits" worksheet. This is because Year 1 on this worksheet may not have the same start date as Year 1 on the "Cost & Benefits" Worksheet.• If you added rows to the "Cost & Benefit" worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.• The Project column should contain all of the Project Investment costs no matter how long the project takes to complete. • The Year 1 column should start on the day the project ends and benefits start, and continues for one year (365 days). Each of the following columns should represent one year of benefit, starting on the anniversary of the project end date. • Instructions for calculating the payback period are at the bottom of this spreadsheet.
To calculate: 1) Find where the Cumulative Total (Row 30) crosses from negative to positive. The payback value is the latest year with a negative Cumulative Total plus a fraction of the following year.2) To determine the fraction, divide the absolute value of the previous year's cumulative total by the annual total of the following year. Then add this fraction to the latest year with a negative Cumulative Total. 3) For an example of a Type 0 Payback calculation, see the XYZ Energy ROI or ABC MedTech ROI documents.
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
$ - $ - $ - $ - $ - $ - $ -
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
$ - $ - $ - $ - $ - $ - $ -
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
NOTE: For an explanation of the difference between Type 0 and Type 1 Payback calculations, read the "Payback" section in Chapter 10: Calculate ROI, in the HBR Guide to Building Your Business . Also, please note that only the "Amount" data auto-populates from the "Cost & Benefits" worksheet. This is because Year 1 on this worksheet may not have the same start date as Year 1 on the
If you added rows to the "Cost & Benefit" worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.The Project column should contain all of the Project Investment costs no matter how long the project takes to complete. The Year 1 column should start on the day the project ends and benefits start, and continues for one year (365 days). Each of the following columns should represent one year of benefit, starting on
Instructions for calculating the payback period are at the bottom of this spreadsheet.
(Row 30) crosses from negative to positive. The payback value is the latest year with a negative Cumulative Total plus a fraction of the following year.2) To determine the fraction, divide the absolute value of the previous year's cumulative total by the annual total of the following year. Then add this fraction to the latest year with a negative
XYZ Energy ROI or ABC MedTech ROI documents.
Estimate RationaleYear 9 Total
$ - $ - $ -
$ - $ - $ -
$ - $ -
Year 9 Total $ - $ - $ -
$ - $ -
Year 9 Total $ - $ - $ -
$ - $ -
$ - $ -
HBR Guide to Building Your Business . Also, please note that only the "Amount" data auto-populates from the "Cost & Benefits" worksheet. This is because Year 1 on this worksheet may not have the same start date as Year 1 on the
If you added rows to the "Cost & Benefit" worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.
The Year 1 column should start on the day the project ends and benefits start, and continues for one year (365 days). Each of the following columns should represent one year of benefit, starting on
plus a fraction of the following year.2) To determine the fraction, divide the absolute value of the previous year's cumulative total by the annual total of the following year. Then add this fraction to the latest year with a negative
Type 1 Payback
Project Investment Capital Expenditures Amount Year 1 Year 2Diseño $ 5,000 Desarrollo $ 10,000 0 $ - Total Capital Costs $ 15,000 Project Expense (Onetime Expense)Compra de dominio (5 años) $ 2,500 Compra de Servidor $ 3,200 0 $ -
Total Project Expense $ 5,700
Total Project Investment $ 20,700 $ - $ -
Operating Costs (OpEx) Amount Year 1 Year 2Mantenimiento $ 6,200 Rediseño $ 7,500 0 $ -
Total Operating Costs $ - $ -
Project Benefits (amount & timing) Amount Year 1 Year 2Incremento de Ventas $ 175 Disminución de costos $ 85 0 $ -
Total Benefits $ - $ -
Annual Total $ - $ - Cumulative Total $ - $ -
• NOTE: For an explanation of the difference between Type 0 and Type 1 Payback calculations, read the "Payback" section in Chapter 10: Calculate ROI, in the HBR Guide to Building Your Business Case. Also, please note that only the "Amount" data auto-populates from the "Cost & Benefits" worksheet.. This is because Year 1 on this worksheet may not have the same start date as Year 1 on the "Cost & Benefits" Worksheet.• If you added rows to the "Cost & Benefit" worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.• The Year 1 column should represent one year (365 days) from the start of the project. Each of the following columns should represent one year starting on the anniversary of the project start date. If the project lasts less than one year, the benefits should start in Year 1. If the project lasts longer than one year, some of the project investment should be in Year 2. • Instructions for calculating the payback period are at the bottom of this spreadsheet.• For more information in the HBR Guide to Building a Business Case, read the "Payback" section in Chapter 10: Calculate ROI.
To calculate: 1) Find where the Cumulative Total (Row 30) crosses from negative to positive. The payback value is the latest year with a negative Cumulative Total plus a fraction of the following year.2) To determine the fraction, divide the absolute value of the previous year's cumulative total by the annual total of the following year. Then add this fraction to the latest year with a negative Cumulative Total. 3) For an example of a Type 1 Payback calculation, see the XYZ Energy ROI or ABC MedTech ROI documents.
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
$ - $ - $ - $ - $ - $ - $ -
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
$ - $ - $ - $ - $ - $ - $ -
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
NOTE: For an explanation of the difference between Type 0 and Type 1 Payback calculations, read the "Payback" section in Chapter 10: Calculate ROI, in the HBR Guide to Building Your Business . Also, please note that only the "Amount" data auto-populates from the "Cost & Benefits" worksheet.. This is because Year 1 on this worksheet may not have the same start date as Year 1 on the
If you added rows to the "Cost & Benefit" worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.The Year 1 column should represent one year (365 days) from the start of the project. Each of the following columns should represent one year starting on the anniversary of the project start date. If
the project lasts less than one year, the benefits should start in Year 1. If the project lasts longer than one year, some of the project investment should be in Year 2. Instructions for calculating the payback period are at the bottom of this spreadsheet.
, read the "Payback" section in Chapter 10: Calculate ROI.
1) Find where the Cumulative Total (Row 30) crosses from negative to positive. The payback value is the latest year with a negative Cumulative Total plus a fraction of the following year.2) To determine the fraction, divide the absolute value of the previous year's cumulative total by the annual total of the following year. Then add this fraction to the latest year with a negative
XYZ Energy ROI or ABC MedTech ROI documents.
Estimate RationaleYear 10 Total
$ - $ - $ -
$ - $ - $ -
$ - $ -
Year 10 Total $ - $ - $ -
$ - $ -
Year 10 Total $ - $ - $ -
$ - $ -
$ - $ -
HBR Guide to Building Your Business . Also, please note that only the "Amount" data auto-populates from the "Cost & Benefits" worksheet.. This is because Year 1 on this worksheet may not have the same start date as Year 1 on the
If you added rows to the "Cost & Benefit" worksheet you must add the rows to this sheet also, and copy the data from the "Cost & Benefits" Worksheet into this worksheet.The Year 1 column should represent one year (365 days) from the start of the project. Each of the following columns should represent one year starting on the anniversary of the project start date. If
the project lasts less than one year, the benefits should start in Year 1. If the project lasts longer than one year, some of the project investment should be in Year 2.
1) Find where the Cumulative Total (Row 30) crosses from negative to positive. The payback value is the latest year with a negative Cumulative Total plus a fraction of the following year.2) To determine the fraction, divide the absolute value of the previous year's cumulative total by the annual total of the following year. Then add this fraction to the latest year with a negative
Net Present Value (NPV)
Project Investment
Capital Expenditures Amount 0 1
Diseño $ 5,000 $ 5,000 $ -
Desarrollo $ 10,000 $ 10,000 $ -
0 $ - $ - $ -
Total Capital Costs $ 15,000
Project Expense (Onetime Expense)
Compra de dominio (5 años) $ 2,500 $ 2,500 $ -
Compra de Servidor $ 3,200 $ 3,200 $ -
0 $ - $ - $ -
Total Project Expense $ 5,700
Total Project Investment $ 20,700 $ 20,700 $ -
Operating Costs (OpEx) Amount 0 1
Mantenimiento $ 6,200 $ - $ 1,200
Rediseño $ 7,500 $ - $ -
0 $ - $ - $ -
Total Operating Costs $ - $ 1,200
Project Benefits (amount & timing) Amount 0 1
Incremento de Ventas $ 175 $ - $ 8,000
Disminución de costos $ 85 $ - $ 5,000
0 $ - $ - $ -
Total Benefits $ - $ 13,000
Annual Total $ (20,700) $ 11,800
Discount Rate: 30.0% NPV: $ 3,623
5
• Entries will auto-populate from the "Cost & Benefits" worksheet.• If you added rows to the "Cost & Benefits" worksheet you must also add the rows to this sheet and copy formulas from similar rows for them to auto-populate. • Before you begin, determine the number of years that you need to provide the NPV calculation for (your stakeholders or someone from finance can tell you). Enter that number in the box at the bottom of the sheet (Cell E30). If you need more than ten years, you will need to manually adjust the formula in cell H29.• Enter the discount rate as a percentage in cell E29. The discount rate will be provided by your finance department.• The NPV will automatically calculate and display in cell H29.• For more information in the HBR Guide to Building a Business Case, read the "Net Present Value" section in Chapter 10: Calculate ROI.
# of years in NPV analysis:select a value between 2 and
10
2 3 4 5 Cal Year Cal Year Cal Year
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
2 3 4 5 Cal Year Cal Year Cal Year
$ 2,000 $ 1,500 $ 1,500 $ 2,000 $ - $ - $ -
$ - $ 7,500 $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ 2,000 $ 1,500 $ 1,500 $ 2,000 $ - $ - $ -
2 3 4 5 Cal Year Cal Year Cal Year
$ 7,500 $ 7,650 $ 7,803 $ 7,959 $ - $ - $ -
$ 5,000 $ 5,000 $ 5,000 $ 5,000 $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ 12,500 $ 12,650 $ 12,803 $ 12,959 $ - $ - $ -
$ 10,500 $ 11,150 $ 11,303 $ 10,959 $ - $ - $ -
If you added rows to the "Cost & Benefits" worksheet you must also add the rows to this sheet and copy formulas from similar rows for them to auto-populate.
Before you begin, determine the number of years that you need to provide the NPV calculation for (your stakeholders or someone from finance can tell you). Enter that number in the box at the bottom of the sheet (Cell E30). If you need more than ten years, you will need to manually adjust the formula in cell H29.
Enter the discount rate as a percentage in cell E29. The discount rate will be provided by your finance department.
, read the "Net Present Value" section in Chapter 10: Calculate ROI.
Estimate Rationale
Cal Year Total
$ - $ 5,000
$ - $ 10,000
$ - $ -
$ - $ 2,500
$ - $ 3,200
$ - $ -
$ - $ 20,700
Cal Year Total
$ - $ 8,200
$ - $ 7,500
$ - $ -
$ - $ 8,200
Cal Year Total
$ - $ 38,912
$ - $ 25,000
$ - $ -
$ - $ 63,912
$ -
Before you begin, determine the number of years that you need to provide the NPV calculation for (your stakeholders or someone from finance can tell you). Enter that number in the box at the bottom
Internal Rate of Return (IRR)
Project Investment
Capital Expenditures Amount 0 1
Diseño $ 5,000 $ 5,000 $ -
Desarrollo $ 10,000 $ 10,000 $ -
0 $ - $ - $ -
Total Capital Costs $ 15,000
Project Expense (Onetime Expense)
Compra de dominio (5 años) $ 2,500 $ 2,500 $ -
Compra de Servidor $ 3,200 $ 3,200 $ -
0 $ - $ - $ -
Total Project Expense $ 5,700
Total Project Investment $ 20,700 $ 20,700 $ -
Operating Costs (OpEx) Amount 0 1
Mantenimiento $ 6,200 $ - $ 1,200
Rediseño $ 7,500 $ - $ -
0 $ - $ - $ -
Total Operating Costs $ - $ 1,200
Project Benefits (amount & timing) Amount 0 1
Incremento de Ventas $ 175 $ - $ 8,000
Disminución de costos $ 85 $ - $ 5,000
0 $ - $ - $ -
Total Benefits $ - $ 13,000
Annual Total $ (20,700) $ 11,800
IRR: 40.3%
5
• Entries will auto-populate from the "Cost & Benefits" worksheet.• If you added rows to the "Cost & Benefits" worksheet you must also add the rows to this sheet and copy the formulas from similar rows for the new rows to autopopulate. • Before you begin, determine the number of years that you need to provide the IRR calculation for (your stakeholders or someone from finance can tell you). Enter that number in the box at the bottom of the sheet (E31). If you need more than ten years, you will need to manually adjust the formula in cell G30.• The IRR will automatically calculate and display in cell G30.• For more information in the HBR Guide to Building a Business Case, read the "Internal Rate of Return" section in Chapter 10: Calculate ROI.
# of years in IRR analysis:select a value between 2 and 10
2 3 4 5 Cal Year Cal Year Cal Year
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
2 3 4 5 Cal Year Cal Year Cal Year
$ 2,000 $ 1,500 $ 1,500 $ 2,000 $ - $ - $ -
$ - $ 7,500 $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ 2,000 $ 1,500 $ 1,500 $ 2,000 $ - $ - $ -
2 3 4 5 Cal Year Cal Year Cal Year
$ 7,500 $ 7,650 $ 7,803 $ 7,959 $ - $ - $ -
$ 5,000 $ 5,000 $ 5,000 $ 5,000 $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ 12,500 $ 12,650 $ 12,803 $ 12,959 $ - $ - $ -
$ 10,500 $ 11,150 $ 11,303 $ 10,959 $ - $ - $ -
If you added rows to the "Cost & Benefits" worksheet you must also add the rows to this sheet and copy the formulas from similar rows for the new rows to autopopulate.
Before you begin, determine the number of years that you need to provide the IRR calculation for (your stakeholders or someone from finance can tell you). Enter that number in the box at the bottom of the sheet (E31). If you need more than ten years, you will need to manually adjust the formula in cell G30.
, read the "Internal Rate of Return" section in Chapter 10: Calculate ROI.
Estimate Rationale
Cal Year Total
$ - $ 5,000
$ - $ 10,000
$ - $ -
$ - $ 2,500
$ - $ 3,200
$ - $ -
$ - $ 20,700
Cal Year Total
$ - $ 8,200
$ - $ 7,500
$ - $ -
$ - $ 8,200
Cal Year Total
$ - $ 38,912
$ - $ 25,000
$ - $ -
$ - $ 63,912
$ -
If you added rows to the "Cost & Benefits" worksheet you must also add the rows to this sheet and copy the formulas from similar rows for the new rows to autopopulate.
Before you begin, determine the number of years that you need to provide the IRR calculation for (your stakeholders or someone from finance can tell you). Enter that number in the box at the bottom of