ROI Calculator Logic and Narrative
Build a simple value model buyers can adjust.
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Design an ROI calculator. Product and the benefits it creates: [PRODUCT_AND_BENEFITS]. Evidence for each benefit (customer data, studies; with sources): [EVIDENCE]. Costs: [COSTS]. Typical buyer inputs available: [BUYER_INPUTS]. Provide: 1. Model structure: inputs (the buyer supplies: number of users, hours spent, error rate, average cost per hour), assumptions (editable, with default values and sources), calculations (formulas written out), and outputs (annual benefit, annual cost, net benefit, payback period, return on investment). 2. A worked example with fictional numbers showing every calculation: for instance saved hours = users x hours per week x 52 x improvement percent; value = hours x loaded hourly cost. 3. Conservative, expected, and optimistic scenarios, with the default being conservative. 4. A narrative template (150 words) that explains the result in the buyer's words and states the assumptions. 5. Guardrails: do not count the same benefit twice, separate hard savings from soft benefits, avoid inflated adoption assumptions, and show sensitivity to the top two inputs. 6. A spreadsheet layout with named cells. Mark every assumption as an assumption, never present the output as a guarantee, and verify evidence before sharing. Use only the evidence provided.
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Inputs (example): 25 users, 4 hours a week each spent on manual reporting, loaded cost 38 an hour, expected time reduction 50 percent (conservative). Hours saved a year = 25 x 4 x 0.5 x 52 = 2,600. Value = 2,600 x 38 = 98,800. Annual cost of the product: 30,000. Net benefit = 98,800 - 30,000 = 68,800. Payback = 30,000 / (98,800 / 12) = 3.6 months. Return = 68,800 / 30,000 = 229 percent. Narrative: "On your own figures, saving two hours a week per person pays back in under four months. If the saving is only 25 percent, the net benefit is 19,400 and payback is 7.3 months." This is an estimate, not a guarantee.
Illustrative only, made-up data. Your results will differ and must be reviewed.