Home Blog ERP ROI Calculator: How to Get a True Return on Investment (ROI) Calculation

ERP ROI Calculator: How to Get a True Return on Investment (ROI) Calculation

A new ERP system can reduce operating costs by automating manual processes, increasing productivity, and providing integrated, standard features. Calculate ERP Software Return on Investment (ROI) eBook will help you calculate the savings and increased earning potential a new ERP system can give your organization.
Divya Ganesh | August 10, 2021


According to the Statista Technology Market Outlook, “Enterprise software has the largest share of the overall software market, with worldwide revenues amounting to over 200 billion U.S. dollars in 2020.” Companies are recognizing the need for a comprehensive enterprise resource planning (ERP) system, but cost is always a concern. When considering a new ERP solution, most businesses only calculate the cost to purchase, implement, and maintain the software, but determining the projected return on investment (ROI) is also critical.

This eBook helps business leaders understand areas where they can achieve a return on investment for ERP applications like Acumatica: How to Calculate ERP Software Return on Investment (ROI)

The Importance of Calculating ROI

Some ERP benefits are not easily quantified, such as:

  • Improving staff retention through ease-of-use and productivity.
  • Fixing errors in a timely and economical way.
  • Centralizing documentation online.
  • Providing constant data availability in a single source of truth.
  • Making faster decisions due to increased visibility.

Though these benefits are difficult to calculate, they can be felt. American Meadows (AMI)—an online retailer of flower bulbs, perennial plants, and wildflower and vegetable seeds—has experienced them firsthand. It has been growing and thriving since implementing Acumatica Cloud ERP.

Ethan Platt, co-owner and president of AMI, says: “We now have the data visibility and accessibility to identify our core customers, understand their challenges, and support them with tailor-made gardening solutions. We can do all of this at scale now by leveraging cutting edge technology thanks to Acumatica.”

Customer stories highlighting qualitative success, as in AMI’s case, are tantalizing. But, to make a fully informed decision, you must also get a concrete, quantitative idea of how a modern cloud ERP system can benefit your business.

Because implementing an ERP solution is a big investment, you should first justify the expense—projecting how the system will benefit your company by estimating the ROI. To do this, compare the cost of the system to the direct and indirect benefits you expect to reap from it over a five- to ten-year period.

These savings are easy to measure.

  • Reduced overall operating expenses
  • Increased inventory turnover or billable hours
  • Accelerated response time for returns or recalls
  • Minimized accounts receivable days outstanding

Keep in mind, though, that every company’s situation is different, which means their needs, and the solutions that will fill those needs, also differ. The ROI for one business will not necessarily apply to another.

Acumatica’s ERP ROI calculator can help you navigate these uncertainties and calculate an ROI that is specifically yours.

Find Your Projected ERP ROI

Companies need to determine their possible ROI before actually investing in an ERP system. The Calculate ERP Software Return on Investment (ROI) eBook is a simple, effective way to do so. Our cloud-based ERP solution is also a simple, effective tool for successfully managing business operations at all levels.

For example, Ethan Platt says that Acumatica has helped AMI, not only operate on a large scale, but also reach “the level of gritty detail that matters to us and to the customer. … You need to have a tool like Acumatica that’s integrated with all the other tools you have in place to meet…consumer expectations.”

Please contact us if you have any questions or would like to set up a demonstration.

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Blog Author

Director of Product Marketing at Acumatica

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