Hello, @Mohammed Irfan Gulam Rasool Shaikh !
How do I calculate my ROI using the Azure Total Cost of Ownership (TCO) Calculator?
As a disclaimer, we focus on technical questions on Q&A so reaching out to Azure Sales may better provide information about calculating ROI. Still, I'll do my best to help you as I believe we can address this question using online tools.
The Azure Total Cost of Ownership (TCO) Calculator is a tool that estimates total on-premises and Azure costs complete with a breakdown of potential costs including hardware, software, electricity, data, networking, IT labor, and more. After we've defined our workload and adjusted assumptions, we're presented with a report.
We can calculate the return on investment (ROI) with the following equation:
( Total on-premises cost over 5 year(s)
- Total Azure cost over 5 year(s)
) / Total Azure cost over 5 year(s)
Looking at a quick example, the total on-premises cost over 5 year(s) would be $98,353 and the total Azure cost over 5 year(s) would be $13,353. That means that the ROI would be ( $98,353 - $13,353) / $13,353 or 637%. That is to say that for each dollar you spent on Azure in this scenario would save $6.37 compared to your on-premises cost assuming the $98,353 on-premises cost and $13,353 Azure cost used in the example.
I hope this helps! Please let me know in the comments if you need additional clarification.
Example used: $98,353 cost on-premises over 5 years vs $13,353 Azure cost over 5 years: