Calculate Your ERP Return on Investment
Before investing in any software, the ROI question is critical: "Will this pay for itself?" For ERP, the answer is almost always a resounding yes — often with payback periods measured in months, not years. Let's calculate the ROI specifically for Indian businesses with real numbers.
ROI Calculation: Small Retail Shop (Annual Revenue ₹50 Lakh)
Time Savings
| Activity | Time Saved/Week | Annual Value (₹500/hr) |
|---|---|---|
| Manual billing to ERP billing | 10 hrs | ₹2,60,000 |
| Stock counting to real-time tracking | 6 hrs | ₹1,56,000 |
| Manual accounting to auto-accounting | 8 hrs | ₹2,08,000 |
| GST return preparation | 4 hrs/month | ₹24,000 |
| Total Annual Time Value | ₹6,48,000 |
Direct Financial Savings
| Saving Category | Annual Value |
|---|---|
| Eliminated billing errors (1.5% of revenue) | ₹75,000 |
| Recovered GST ITC (missed previously) | ₹40,000 |
| Reduced dead stock losses | ₹60,000 |
| Reduced CA fees (better books) | ₹30,000 |
| Overdue collection improvement | ₹45,000 |
| Total Annual Direct Savings | ₹2,50,000 |
ERP ROI Summary
Annual ROI Calculation
Total Annual Benefits: ₹8,98,000
MILAAN ERP Annual Cost: ₹19,999
Net Annual Return: ₹8,78,001
ROI: 4,391%
Payback Period: 8–10 days
ROI for Different Business Types
- Small retail shop: 400–600% direct financial ROI
- Wholesale distributor: 600–1,000% ROI from volume billing efficiency
- Pharmacy: 500–800% ROI including expiry loss prevention
- Multi-branch retail: 800–1,500% ROI from centralised management savings
When Do Benefits Start?
- Week 1: Billing time savings begin immediately
- Month 1: Stock accuracy improves; first ITC correctly claimed
- Month 2–3: Accounting workload reduction visible
- Month 6: Full benefits realised; dead stock identified and cleared
Get Your Personalised ROI Estimate!
Book a FREE MILAAN ERP demo and our team will calculate your specific ROI based on your business details.