Inputs
Formula used
- Time value: Employees × (Minutes saved ÷ 60) × Work days × Hourly cost × Utilization%.
- Commute savings: Employees × Cost saved per day × Work days.
- Office savings: Employees × Office savings per month × 12.
- Productivity impact: Employees × Annual salary × Productivity%.
- Turnover savings: Employees × max(0, Baseline − Expected) × Salary × Replacement multiple.
- Absence savings: Employees × Reduced days × Hours per day × Hourly cost.
- Net annual benefit: Annual benefits − Annual recurring costs.
- ROI%: (Net annual benefit ÷ Annual recurring costs) × 100.
- Payback months: Upfront cost ÷ (Net annual benefit ÷ 12), if positive.
- NPV: −Upfront cost + Σ(Net annual benefit ÷ (1 + r)t), for t = 1..Years.
How to use this calculator
- Enter the number of employees and your cost assumptions.
- Set commute time saved and the utilization percent realistically.
- Include office savings only if space truly scales down.
- Estimate productivity and turnover effects conservatively at first.
- Click Calculate ROI to view results above the form.
- Use CSV or PDF downloads to share scenarios with stakeholders.
Example data table
| Sample inputs | Value |
|---|---|
| Employees | 25 |
| Hourly cost | $30.00 |
| Commute minutes saved | 50 minutes/day |
| Utilization of saved time | 35% |
| Office savings | $280.00/month per employee |
| Tools cost | $16.00/month per employee |
| Stipend | $240.00/year per employee |
| Setup cost | $400.00 one-time per employee |
| Sample outputs | Value |
|---|---|
| Annual benefits | $220,812.50 |
| Annual recurring costs | $10,800.00 |
| Net annual benefit | $210,012.50 |
| ROI (annual) | 1,944.6% |
| Payback period | 0.6 months |
| NPV | $531,222.58 |
Quantifying time reclaimed
Remote work converts commuting minutes into usable hours. The calculator multiplies minutes saved by workdays, employees, hourly cost, and a utilization rate. If 50 employees save 60 minutes daily, that is 11,500 hours yearly. At $35 per hour and 40% utilization, reclaimed work value is $161,000. If utilization is 20%, value halves, showing why realistic assumptions matter.
Separating hard and soft savings
Some benefits reduce cash outflows, while others improve capacity. Commute cost savings and office overhead savings are “hard” only when reimbursements, travel, or space truly decline. Enter office savings per employee per month based on leases, seat ratios, and planned footprint reductions. Treat snacks or utilities as partial, not automatic, savings. For hybrid teams, apply a conservative savings share, like 30–60%.
Productivity and retention assumptions
Productivity change applies to annual salary, reflecting output per paid hour. Use small ranges first, such as 1–5%, and document evidence from cycle time, defects, or throughput. Retention savings depend on turnover improvement and replacement multiple. A 4-point turnover drop with a 0.30 multiple means 0.04 × salary × 0.30 per employee annually. For $70,000 salary, that is $840 per employee per year.
Interpreting ROI, payback, and NPV
Annual ROI compares net annual benefit to recurring costs like tools and stipends. Payback estimates how quickly one-time setup costs are recovered by monthly net value. NPV discounts future net benefits using your discount rate and horizon. Positive NPV supports investment even when annual ROI is modest. Use a higher discount rate when benefits are uncertain or depend on behavior change.
Scenario planning and governance
Run best, base, and conservative scenarios. Lower utilization, reduce office savings, and apply negative productivity to stress test. Track post-launch metrics: absence days, voluntary attrition, ticket resolution, and meeting load. Revisit inputs quarterly, and align policy decisions with security controls, manager training, and clear performance expectations. When results look too good, check double counting, like valuing commute time and productivity together; use one or justify both with separate evidence from your operating dashboards. Use the CSV export to compare scenarios side by side and record assumptions for audits.
FAQs
What does ROI represent here?
ROI is calculated as net annual benefit divided by annual recurring costs, expressed as a percentage. It helps compare policies with different tool and stipend budgets.
Why is saved-time utilization required?
Not every commuting minute becomes work output. Utilization estimates the share converted into productive time. Use lower values if employees use the time for rest, caregiving, or flexible scheduling.
Should I enter annual salary or hourly cost?
Either works. If annual salary is blank, the calculator estimates it from hourly cost, workdays, and work hours per day. Provide salary when you have reliable compensation data.
How do I avoid double counting benefits?
Keep benefit sources distinct. For example, if productivity already captures improved output, reduce or remove time-value utilization. If office savings depend on lease changes, only include the portion you can realize.
What is a reasonable replacement multiple?
Replacement multiple reflects recruiting costs and ramp-up productivity loss as a share of annual salary. Many organizations model 0.2 to 0.5 for knowledge work, but you should use your historical hiring and onboarding data.
Why include NPV and a discount rate?
NPV accounts for time value of money and uncertainty over multiple years. A higher discount rate reduces future benefits, making the estimate more conservative and useful for comparing investments with different timelines.