Formula
Downtime hours per incident = average incident resolution time ÷ 60Incidents per year = incidents per month × 12Total hours spent on incidents per month = incidents × minutes ÷ 60(per year × 12)Hours saved through IT = hours spent × % resolved by ITHourly cost = hourly pay, orhourly pay × benefits loadwhen true hourly cost is on. Hourly pay = annual salary ÷ 2,088.IT savings per year = hours saved through IT/year × hourly costAverage lost wages per year = employees affected × hourly cost × downtime hours per incident × % of work lost × incidents per yearPotential revenue loss per year = revenue per hour × downtime hours per incident × incidents per yearLost wages saved = lost wages per year × % resolved by IT;revenue loss avoided = revenue loss per year × % resolved by ITBreach risk reduced = expected yearly breach loss × assumed reduction %Overwatch labor per incident = $300 + max(0, downtime hours − 2) × $100(120 min = $300, 180 min = $400, 60 min = $300)Overwatch labor per year = labor per incident × incidents not resolved by IT;break-fix labor per year = labor per incident × all incidentsBreak-fix labor avoided = labor per incident × incidents resolved by IT(counted only when you switch it on)Total value = IT savings + lost wages saved + revenue loss avoided + breach risk reduced (+ break-fix labor avoided)ROI per year = (total value − investment) ÷ investment;payback (months) = investment ÷ (total value ÷ 12)Range = total value × (1 ± range %), with ROI and payback recalculated at each end