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Control ROI

Free Control ROI calculator with clear step-by-step results.

About Control ROI

Control ROI compares the risk reduction to the cost of the control.

Formula

Formula

ROI = (ALE reduction − control cost) ÷ control cost

Worked example

With the default values below, Control ROI returns Risk Reduction of $40,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

ALE before controlminimum 0 $
50,000 $
ALE after controlminimum 0 $
10,000 $
Annual control costminimum 0 $
15,000 $

Results

Risk Reduction
$40,000.00
Net Annual Benefit
$25,000.00
Control ROI
166.7%

Step by step

  1. 1Values used
  2. 2Formula
  3. 3Risk Reduction= $40,000
  4. 4Net Annual Benefit= $25,000
  5. 5Control ROI= 166.7

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 1 decimal place, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How does this calculator work?

Control ROI compares the risk reduction to the cost of the control.

Why does this matter?

Quantitative risk analysis, not an accounting ROI.

Control ROI – Calculate Risk Reduction | Calcrivo