I have the following figures:
(x) Quote for new software feature: $10,000
(y) Employee Rate: $15.00/hour
(z) Hours per Day to perform task manually: 2
(n) Number of working days in a year: 251
(a) Hours per day to perform task after feature is developed: .5
I am trying to calculate the ROI in years. I calculate the financial value:
fv = (y * z * n) - (y * a * n)
fv = 7530 - 1882.5
I then calculate the ROI by doing:
roi = ((fv - x) / x) * 100
roi = ((5647.5 - 10,000) / 10,000) * 100
roi = -43.525
Are my formulas correct?
How do I figure out break even in years?
EDIT: I want to figure out how long it will take to recoup the investment ($10,000) from the perspective of labor saved. Does that help?