Note: This is an example of how to use the cost/benefit template.

This download also includes a blank template on the next worksheet for your use.
(See CostBenefit Template tab at bottom of page.)

Example of the Cost/Benefit Template

Worksheet
Internal Labor Cost/Hour Dollars $ 43.25
Expected life span Years 4
Monthly Sales Units 14,000
Margin/Unit Sold Dollars $ 1.45

Costs Unit Entry Extended

Implementation
Planning Hours 240 10,380
Contract Labor Dollars 15,400 15,400
Internal Implementation Labor Hours 860 37,195
Capital Costs Dollars 15,500 15,500
Implementation Cost 78,475
Amortized Implementation Cost 1,635
Ongoing
Maintenance Contract Dollars/Month 1,250 1,250
Operational Costs Dollars/Month 1,166 1,166
Ongoing Monthly Cost 2,416
Monthly Cost $ 4,051

Benefits Unit Entry Extended

Productivity Savings Dollars/Month 2,383 2,383
Expense Reduction Dollars/Month - -
Increased Sales Units 3,500 5,075
Decreased Cost of Goods Sold Dollars/Unit - -
Monthly Benefit $ 7,458

Calculate Total Monthly Benefit

Monthly Benefit $ 7,458
Monthly Cost $ 4,051

Total Monthly Benefit $ 3,407

Payback (Months) 11
Subtract the costs from the benefits to calculate the
Total Monthly Benefits.

If this sum is a negative number, obviously this figure represents

a Total Monthly Cost instead of a benefit.
Cost/Benefit Template

Worksheet
Internal Labor Cost/Hour Dollars $ 3.00
Expected life span Years 344
Monthly Sales Units 12
Margin/Unit Sold Dollars $ 22.00

Costs Unit Entry Extended

Implementation
Planning Hours 2 6
Contract Labor Dollars 2,000 2,000
Internal Implementation Labor Hours 34 102
Capital Costs Dollars 100,000 100,000
Implementation Cost 102,108
Amortized Implementation Cost 25
Ongoing
Maintenance Contract Dollars/Month -
Operational Costs Dollars/Month -
Ongoing Monthly Cost -
Monthly Cost $ 25

Benefits Unit Entry Extended

Productivity Savings Dollars/Month -
Expense Reduction Dollars/Month -
Increased Sales Units -
Decreased Cost of Goods Sold Dollars/Unit -
Monthly Benefit $ -

Calculate Total Monthly Benefit

Monthly Benefit $ -
Monthly Cost $ 25

Total Monthly Benefit $ (25)

Payback (Months) #DIV/0!