Resources · Return on Investment

IT as a Service ROI calculator

See how much time and money IT incidents cost your business, and what you get back when Overwatch One resolves incidents remotely or prevents them. Change any number and the results update instantly.

Inputs

Enter your values. Results update as you type.

minutes
%
$
$/hr
$/yr

Lost wages & revenue

%
$/hr

True hourly cost

×

Breach risk (optional)

$
%

Options

±%

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Formula

  • Downtime hours per incident = average incident resolution time ÷ 60
  • Incidents per year = incidents per month × 12
  • Total hours spent on incidents per month = incidents × minutes ÷ 60 (per year × 12)
  • Hours saved through IT = hours spent × % resolved by IT
  • Hourly cost = hourly pay, or hourly pay × benefits load when true hourly cost is on. Hourly pay = annual salary ÷ 2,088.
  • IT savings per year = hours saved through IT/year × hourly cost
  • Average lost wages per year = employees affected × hourly cost × downtime hours per incident × % of work lost × incidents per year
  • Potential revenue loss per year = revenue per hour × downtime hours per incident × incidents per year
  • Lost wages saved = lost wages per year × % resolved by IT; revenue loss avoided = revenue loss per year × % resolved by IT
  • Breach 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 incidents
  • Break-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

Key assumptions

  • All inputs start empty and are your own numbers. We don’t pre-fill incident counts or durations from industry averages.
  • If you leave an assumption blank, the calculator uses the default shown in grey: 25% resolved by IT, 100% of work lost, 1.43 benefits load, 0% breach risk reduction, ±30% range. The PDF marks any default that was used.
  • Downtime per incident equals the average incident resolution time.
  • Average lost wages assumes the affected staff are paid while they can’t work, scaled by the % of work lost.
  • Potential revenue loss assumes sales stop completely during downtime. If you can still sell (cash, paper orders), lower your revenue per hour.
  • IT savings per year counts the time of whoever handles the incident (the line in our original sheet). Count other idle staff under employees affected so no one is counted twice.
  • A full-time year is 2,088 hours (40 hours × 52.2 weeks), as in our original sheet.
  • The benefits load (default 1.43) comes from BLS total compensation ÷ wages. Industry presets use their own BLS ratio.
  • Overwatch labor for incidents that still need hands-on work is paid under break-fix or IT as a Service alike, so it appears in the estimate summary but not in ROI. ROI only counts value that changes.
  • The low–high range is an assumption (default ±30%), not a statistical confidence interval.
  • Breach loss and its reduction are entirely your own estimates. We don’t pre-fill breach costs.

Benchmark sourcing

Industry presets fill hourly pay, salary, and the benefits load from the U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, Table 4: private industry workers by occupational and industry group, June 2026. Staff counts in presets are examples, not benchmarks. Edit them to match your business.

Industry presets and BLS sources
PresetBLS series (Table 4)Wages /hrTotal comp /hrLoadSalary (× 2,088)
Restaurants & HospitalityAccommodation and food services industry$16.18$20.031.24×$33,784
Healthcare & MedicalHealth care and social assistance industry$35.13$49.931.42×$73,351
Professional ServicesProfessional, scientific, and technical services industry$51.88$75.971.46×$108,325
Construction & ContractingConstruction industry$36.13$51.961.44×$75,439
Legal & Law FirmsProfessional, scientific, and technical services industry$51.88$75.971.46×$108,325
EducationEducational services industry$40.16$55.851.39×$83,854
Non-ProfitOther services industry$28.11$37.951.35×$58,694
ResidentialPrivate industry workers$32.82$46.891.43×$68,528
  • Default benefits load 1.43: private industry total compensation $46.89/hr ÷ wages $32.82/hr (benefits about 30% of compensation). Source: BLS ECEC news release, June 2026.
  • Legal & Law Firms and Non-Profit use the closest published BLS group, because BLS doesn’t publish them separately. Residential uses the all-private-industry average as an example value of your time.
  • The grey example hints (3 incidents, 120 minutes, 25%, $12,000, $150/hr) and the 2,088-hour year come from Overwatch One’s original ROI sheet. Overwatch labor rates ($300 per incident up to 2 hours, then $100/hr) are Overwatch One’s rates.
  • Method references: the lost-wages line follows the common downtime formula of people affected × hourly cost × duration (IsDown downtime cost calculator). The ±30% range follows the band used by Tideline Insights’ ROI calculator.

Why this matters

For a small business, IT incidents rarely show up as one big bill. They show up as a register that won’t print, a laptop that won’t connect, or a front desk waiting on a reboot, with a few people stuck at a time. This calculator puts those hours and dollars in one place so you can see what an incident really costs you, compare break-fix labor with a predictable yearly investment, and decide what makes sense. If the numbers say IT as a Service isn’t worth it for you yet, that’s useful to know too.

Want to see your real numbers? Book an assessment or Ask Scout.

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