Calculator
Example data table
| Scenario | Current hosting | New hosting | Downtime hrs | Revenue/hr | Lift | Migration | Period | ROI | NPV |
|---|---|---|---|---|---|---|---|---|---|
| Sample | $250/mo | $180/mo | 2 → 0.5 | $500 | $150/mo | $800 | 36 mo | 4625.00% | $34,279.23 |
Formula used
Baseline monthly cost = current hosting + current operations + (current downtime hours × revenue per downtime hour).
New monthly cost = new hosting + new operations + (new downtime hours × revenue per downtime hour).
Net monthly benefit = (baseline monthly cost − new monthly cost) + performance revenue lift + other monthly savings.
Total benefits = cost savings over the period + total revenue lift + total other savings.
Net benefit = total benefits − one-time migration cost.
ROI (%) = (net benefit ÷ total investment) × 100.
NPV = −migration + Σ( discounted net monthly benefit ). Discounting uses the annual rate converted to a monthly rate.
How to use this calculator
- Enter your analysis period and financial rates.
- Add current monthly hosting and operations costs.
- Add proposed monthly hosting and operations costs.
- Estimate downtime hours for both scenarios and value per hour.
- Estimate monthly revenue lift and other savings after improvement.
- Enter one-time migration cost and calculate ROI.
- Review ROI, NPV, payback, and the driver breakdown.
- Export results using the CSV or PDF buttons.
FAQs
1) What does hosting ROI mean here?
It estimates the financial return from moving to a different hosting setup, including cost savings, reduced downtime value, and performance-driven revenue changes.
2) Why include downtime hours and revenue per hour?
Downtime often causes lost orders and support costs. Multiplying expected downtime by a value per hour gives a practical estimate of downtime impact.
3) What should I enter for operations cost?
Include staff time, monitoring tools, backups, security work, incident response, and any managed services. Use monthly averages to stay consistent.
4) How is payback calculated?
Payback is the first month where discounted cumulative net benefits exceed the one-time migration cost. If it never happens, payback is not reached.
5) Why is ROI sometimes extremely high?
If the new plan is cheaper monthly and migration cost is small, investment is low while benefits are large. That can make the ROI percentage very high.
6) What does NPV tell me?
NPV accounts for the time value of money. A positive NPV suggests the switch is financially attractive given your discount rate.
7) How should I estimate performance revenue lift?
Use analytics or experiments. Convert expected changes in conversion rate, average order value, or churn into monthly revenue or margin impact.
8) Can I use this for shared hosting, VPS, or cloud platforms?
Yes. The model focuses on costs and outcomes, not vendor type. Enter values that match your current and proposed setup.