How to Calculate ERP ROI: A Practical Guide for SMEs

The fear of ERP cost is usually based on enterprise-tier pricing. For Indian SMEs, a cloud ERP subscription starts at ₹15,000–40,000/month — and most recover that within 12–18 months.

The Four ROI Drivers

Inventory reduction (typically 15–25% of carrying cost), labour savings from automated reconciliations, compliance penalty avoidance, and faster order-to-cash cycles.

Inventory Carrying Cost Example

A ₹2 crore inventory at 18% annual carrying cost = ₹36 lakh/year. A 20% reduction saves ₹7.2 lakh/year — often enough to pay for the ERP.

Labour Hours Saved

Manual stock reconciliation, invoice matching, and MIS reporting consume 80–120 man-hours/month at a mid-size plant. ERP reduces this by 60–70%.

Use Our ROI Calculator

Infuro provides a free online ROI calculator. Enter your current inventory value, headcount, and compliance costs — the tool estimates your break-even point and 3-year savings.