Share via

Azure ROI Calculator

Feb 1, 2023, 1:58 PM

I need to calculate ROI for moving my resources to Windows Azure.

I have used the Azure TCO calculator to derive the cost of 3,4,5 years for On Premise vs Azure Cost. I also have the savings derived for the 3,4,5 years.

How do i calculate ROI ??

The duration /time frame it would take for the ROI to materialize.

Azure Virtual Machines
Azure Virtual Machines
An Azure service that is used to provision Windows and Linux virtual machines.
8,181 questions
{count} votes

1 answer

Sort by: Most helpful
  1. kobulloc-MSFT 26,301 Reputation points Microsoft Employee
    Feb 1, 2023, 9:34 PM

    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:

    User's image

    1 person found this answer helpful.

Your answer

Answers can be marked as Accepted Answers by the question author, which helps users to know the answer solved the author's problem.