Calculator Will Help You Calculate the Profitability of an IT Project

Profitability is the general parameter of economic efficiency of the enterprise activity or the use of capital/resources.

For the profitability calculation, the standard formula can be applied, where “type of income” is related to the index, the profitability of which you need to measure.

Considering IT project, “type of income” means project delivery, the “index” is the total cost of the project.

Therefore, the formula is:

R= project delivery/Total cost of the project* 100%

Calculation method

Select currency USD EUR грн.

Development phase

Engineering and design cost <% currency %> мес.

Development cost <%currency%> мес.

Implementation phase

Support and debugging costs мес. <%currency%> в мес.

Realisation phase

Advertising and Promotions month. <%currency%> per month.

Support and Management Services month. <%currency%> per month.

Mandatory costs

Server, components and services fees <%currency%> per month.

Total: <%total_costs%> <%currency%>

The payment schedule for the first 12 months.

Profitability Calculation

Payback Period months.

Expenses for the Reference Return Period: <%term_costs%> <%currency%>

Payback model
reduction of expenses income increase organizational development

How much money do you spend per month? <%currency%>

How much money are you going to spend after the implementation? <%currency%>

Start from month after the development you expect (0 - immediately, 6 - after 6 months, etc) months.

During the RRP you will use the solution <%shorten.term%> mons and save <%shorten.value%> <%currency%>

Profitability amounts <%rent.value%>%

<%rent.decision%>

How much have sales of basic goods grown up by month? <%currency%>

Additional income (advertising, etc.) per month <%currency%>

Start from month after the development you expect (0 - immediately, 6 - after 6 months, etc) months.

During the RRP you will use the solution <%sales.term%> mons and increase profits by <%sales.value%> <%currency%>

Profitability amounts <%rent.value%>%

<%rent.decision%>

How much money will you get per month after the development? <%currency%>

Start from month after the development you expect (0 - immediately, 6 - after 6 months, etc) months.

During the RRP you will use the solution <%org.term%> mons and increase profits by <%org.value%> <%currency%>

Profitability amounts <%rent.value%>%

<%rent.decision%>

#Business

18.11.2017

The images used in this article are taken from open sources and are used as illustrations.

Useful Service: IT Project Profitability Calculator

Calculation method

Profitability Calculation