Calculate the ROI of Estimating and Takeoff Software
Construction estimating and takeoff software is a must if you want to be successful as a construction manager. This software is key to putting together an accurate and compelling bid that will convince clients to choose you over the competition. But construction software can be very expensive, leaving you wondering whether it really makes sense to spend that kind of money. However, you probably have some idea of how much of a boost in efficiency you’re hoping for with the new tool, and therefore how much extra revenue you can expect by doing a software overhaul. With that information in hand, you can calculate a rough ROI (return on investment) to help you make an informed buying decision. ROI is a percentage that works out to revenue increase minus cost, divided by cost. ROI = [revenue increase – cost / cost] So, for example, if you can expect a $20,000 increase in annual revenue because of your new software, and just $7,000 in annual software costs, that’s a healthy ROI of nearly 200%. Use our calculator to see if the software option you’ve been eyeing makes sense for a business of your size:
Key takeaways
Once you’ve decided that the ROI makes sense, now you run into the next challenge: figuring out which software to purchase. You may already have an idea, or you may be just starting your search. Either way, you should compare as many options as possible in our construction estimating software directory. Check out our FrontRunners guide to see what users think are the best options. In addition, here are a number of tips and tricks that can help get you where you need to go, whether that be through lower-cost software or by implementing best practices: