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Calculate your ROI from Zoho CRM

It's well-known that CRMs can streamline your sales process, engage your customers, and boost your revenue. But doubts may arise when you're about to invest in a CRM that's unwieldy and difficult to adopt and shows signs of breaking your budget—a decision which could be harmful to your reputation as well. People get fired for getting IBMs these days!

Zoho CRM

Calculating the savings, revenue gain, and indirect benefits from a Zoho CRM implementation

Savings

Alternate system

Zoho CRM

Annual Subscription cost for 200 users

Per user license cost * number of users

Support Cost

Usually a percentage of the subscription cost
(20% of sub cost)
(20% of sub cost)

Implementation Cost

You can get an estimate from the vendors
(70% of sub cost)
(70% of sub cost)

Cost of inefficiency

The cost of inefficiency is the hidden expense you bear when a system or process doesn’t perform at its best—like lost time, missed opportunities, or repeated errors. It’s often not directly visible, but it eats into productivity and profits. When you switch to a better system, like a CRM, you stop paying that cost—not because it suddenly appears, but because you finally eliminate it.
(30% of sub cost)
(Always zero because Zoho doesn't have inefficiency cost)

Integration costs

The expenses incurred when bringing different systems, processes, or entities together
Hardware costs (on-premise systems)
Networking and operations cost
(on-premise systems)

Result

Total cost of running an alternate CRM per year in USD

$792,000

Total cost of running Zoho CRM per year in USD

$134,190

Savings with the new system

$657,810

Savings with the new system = Total cost of running an alternate CRM  -  Total cost of running Zoho CRM

Revenue gain

Annual revenue with alternative system in USD

Your company's current annual revenue

Impact of Zoho CRM on revenue growth

Revenue growth in % with a new CRM like Zoho
assuming 1% growth
Expected revenue after Zoho CRM

Result

Revenue gain with Zoho CRM in USD

$134,190

Revenue gain = Expected revenue after Zoho CRM - Annual revenue with alternative system

Indirect benefits

An indirect benefit is a positive outcome that is not the primary goal of a product or service but still adds value—like comfort from an AC, improved mood from good lighting, or time saved through convenience.
Value with the alternative
Improvement
factor
Improved value with Zoho
Assign a dollar value for the improvement

Cycle time per lead in minutes

Time it takes for a lead to move to the next stage

Assign a Dollar Value for the Improvement

Calls made per year
(20% growth)

Assign a Dollar Value for the Improvement

Meetings completed per year
(20% growth)

Assign a Dollar Value for the Improvement

Average time to close a deal in days

Time taken to move a lead from the initial contact to the final sale
(20% reduction)

Assign a Dollar Value for the Improvement

Cost per lead in USD

Ask the marketing team for this value
(20% reduction)

Assign a Dollar Value for the Improvement

Customer satisfaction score out of 100

Ask the customer support team for this value
(10% growth)

Assign a Dollar Value for the Improvement

Customer retention %

Assign a Dollar Value for the Improvement

Sales admins employed now

Automation and workflow will allow you to move Sales admins to other roles
(30% reduction)

Assign a Dollar Value for the Improvement

Data analysts employed now

Built-in reports and AI generated insights will allow you to move Data Analysts to other needs
(30% reduction)

Assign a Dollar Value for the Improvement

Total USD value of indirect benefits
because of Zoho CRM

Total USD value of indirect benefits = Summation of all rows: [(Difference between improved value with Zoho CRM and Values with the alternative) × Assigned dollar value]

Improvement factor: These values are based on an internal study of 150 organizations. You can edit it to suit your own projections if required

Assign a dollar value for improvement: Every improvement has an impact on the revenue. We have kept it at a minimum of $1. You could input a higher value.

Here are the calculated values

ROI in %

613.778970117

(Savings + revenue gain + dollar value of indirect benefits - cost of Zoho CRM) / (cost of Zoho CRM) × 100

Payback period

0.140099392 months

((Cost of new system) / (Savings + Revenue gain + Dollar value of indirect benefits)) × 12

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Disclaimer: The values used for the calculation has assumptions, research findings, actual quotes. This is a model to calculate ROI, but ROI is dependent to a great extent on the indirect benefits. It requires a separate effort from the customer to derive monetary value to indirect benefits to get true ROI. The calculator is meant to help the viewer to fill in the values that reflect their business situations and derive the ROI value and the payback period. Please get back to Zoho if you need clarifications. Do not consider the calculator readings alone to make purchase decisions.