Most HR software savings come from automating manual work – onboarding, leave tracking, payroll data entry and reporting. Be conservative with time-saving estimates.
How to use the HR Software ROI Calculator
- Number of employees
- Software cost per employee per month
- Implementation and training (one-off)
- HR hours saved per week
- HR hourly cost
- Payroll and compliance errors avoided per year
- Turnover savings per year
- Period
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the number of employees, the software price per employee per month, implementation costs, HR hours saved per week, HR hourly cost, and expected savings from fewer errors and lower turnover.
Tips
- Enter figures for the same period and in the same currency.
- Exchange rates and prices change constantly – update them before you rely on a result.
- Use results as estimates and confirm important figures with the official source.
- Everything runs in your browser – try different values to compare scenarios.
Common mistakes to avoid
- Mixing gross and net figures.
- Using outdated rates.
- Treating rules of thumb as exact.
Inputs explained
| Field | What to enter |
|---|---|
| Number of employees | A number |
| Software cost per employee per month | Amount in your currency |
| Implementation and training (one-off) | Amount in your currency |
| HR hours saved per week | A number |
| HR hourly cost | Amount in your currency |
| Payroll and compliance errors avoided per year | Amount in your currency |
| Turnover savings per year | Amount in your currency |
| Period | In years |
What each result means
- Yearly savings = [HR hours saved per week]×52×[HR hourly cost] + [Payroll and compliance errors avoided per year] + [Turnover savings per year]
- Yearly software cost = [Number of employees]×[Software cost per employee per month]×12
- Total cost over the period = [Yearly software cost]×[Period] + [Implementation and training (one-off)]
- Net benefit over the period = [Yearly savings]×[Period] – [Total cost over the period]
- ROI = [Net benefit over the period]÷[Total cost over the period]×100
Example values
How the main result changes when Number of employees changes and everything else stays at the example values above:
| Number of employees | ROI (%) |
|---|---|
| 60 | 456.1 |
| 90 | 300.71 |
| 120 | 213.2 |
| 150 | 157.05 |
| 180 | 117.98 |
| 240 | 67.16 |
Formula
Yearly savings = hours saved × hourly cost + error costs avoided + turnover savingsCost = subscription × employees × 12 + implementation (spread over the period)ROI = (savings − cost) ÷ cost × 100; payback = cost ÷ monthly savingsWorked example
Inputs — Number of employees: 120; Software cost per employee per month: $8; Implementation and training (one-off): $5,000; HR hours saved per week: 15; HR hourly cost: $35; Payroll and compliance errors avoided per year: $4,000; Turnover savings per year: $10,000; Period: 3 years.
Results — Yearly savings = $41,300.00; Yearly software cost = $11,520.00; Total cost over the period = $39,560.00; Net benefit over the period = $84,340.00; ROI = 213.2 %; Payback period = 2 months.
Frequently asked questions
How do I calculate HR software ROI?
(Savings − costs) ÷ costs × 100 over the evaluation period.
What savings should I include?
Time saved, fewer errors and fines, and lower turnover.
What is a good ROI?
Anything comfortably above 0% with a payback under 12–18 months.
What formula does the HR Software ROI Calculator use?
Yearly savings = hours saved × hourly cost + error costs avoided + turnover savings.