Refactoring ROI Calculator
Compare the cost of refactoring against the maintenance time it saves.
About Refactoring ROI Calculator
Return on investment restates profit as a percentage of the money put in, so a small campaign and a large one can be ranked on the same scale. The return multiple is the gross figure (revenue ÷ cost) that marketing teams usually call ROAS. A refactoring effort can grow revenue and still destroy value; ROI is what tells you which side of the line you are on before you scale the spend.
Formula
Refactoring ROI
ROI = (Value of maintenance time saved − Cost of the refactoring work) ÷ Cost of the refactoring work × 100
- Value of maintenance time saved
- Value returned by the refactoring effort
- Cost of the refactoring work
- Total cost invested
Worked example
With the default values below, Refactoring ROI Calculator returns Return on Investment of 200.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Value of maintenance time savedminimum 0
- 180,000
- Cost of the refactoring workminimum 0
- 60,000
Results
- Return on Investment
- 200.00%
- Net Return
- $120,000.00
- Return Multiple
- 3.00
- Revenue Needed to Break Even
- $60,000.00
- Verdict
- Profitable — every unit spent returned 3 back
Step by step
- 1Values used
- 2Refactoring ROI
- 3Return on Investment= 200.00
- 4Net Return= 120,000.00
- 5Return Multiple= 3.00
- 6Revenue Needed to Break Even= 60,000.00
- 7Verdict= Profitable — every unit spent returned 3 back
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, 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 is Refactoring ROI calculated?
ROI = (Value of maintenance time saved − Cost of the refactoring work) ÷ Cost of the refactoring work × 100 Return on investment restates profit as a percentage of the money put in, so a small campaign and a large one can be ranked on the same scale. The return multiple is the gross figure (revenue ÷ cost) that marketing teams usually call ROAS.
Why does Refactoring ROI matter?
A refactoring effort can grow revenue and still destroy value; ROI is what tells you which side of the line you are on before you scale the spend.
What values do I need to enter?
This calculator takes 2 inputs: Value of maintenance time saved, Cost of the refactoring work. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.