Monetary Benefits Calculator

The Five Steps to Monetary Benefits
  1. Define the unit of measure. This is the measure influenced by the project such as one new customer, one accident, one complaint, one team member turnover, one out-of-compliance discrepancy, and one accident.
  2. Determine the value of one unit of measure (V). This could be value add such as profit for one new customer or cost avoidance for preventing one accident. For example, use $105 as the value for an unexpected absence.
  3. Determine the change in the performance of the measure caused by the program (ΔP). For example, if you prevented 28.8 absences per month, you would enter 28.8 in the calculator.
  4. Annualize the change in performance (AΔP). For example, if it is a monthly change, multiply it by 12.
  5. Calculate the annual monetary benefits (AΔP*V). Multiply the annual change in performance by the value of the measure.
How to Use the Calculator

This calculator is designed to provide monetary benefits for up to three measures. If you have more than three measures, record your current total monetary value and repeat the process. You will use your total monetary value in the ROI Calculator. In the calculator:

  1. Enter the value of one unit of measure
  2. Enter the change in performance of that measure during one month
  3. Click next to proceed to the next measure