ROI
AI tool ROI calculation guide
An AI tool is worth paying for when it repeatedly saves time, improves work quality, or helps generate revenue. It is not worth paying for just because it feels impressive during a demo.
Use a simple ROI formula
Start with the monthly value of time saved, then subtract the full monthly cost of the tool. If a $40 subscription saves four hours and each hour is worth $25, the estimated monthly value is $100. After subtracting $40, the net value is $60.
Inputs to measure
- Monthly subscription cost, including seats, credits, and add-ons.
- Hours saved per week on real work, not test prompts.
- How often the output needs human rewriting or correction.
- Revenue impact, such as faster proposals, more content, or better support response time.
- Risk reduction, such as fewer missed tasks or faster documentation.
Watch for fake savings
A tool does not save money if it creates review work, duplicate workflows, or extra subscriptions around it. Count the time required to prompt, check, edit, and publish the output.
Decision rule
Keep a tool when it creates measurable value every month. Cancel or downgrade tools that are useful only once in a while. Add the real monthly cost to the AI cost calculator before renewing annual plans.