The verdict in three sentences
A custom business platform at 68,000 EUR let a 45-employee SME save 22 hours/week (i.e. ~48,000 EUR/year in loaded cost), cut data-entry errors by 70% and cut client processing time threefold. Payback lands in 17 months, and the 3-year TCO (including 14% maintenance) stays well below the cost of the Excel + email status quo. The calculation method below is reproducible for building your own investment case.
The case: from Excel to a platform
2026 context: a 45-employee industrial SME, order and client management scattered across 14 Excel files and email chains. Symptoms: double entry, errors, delays, no real-time visibility.
| Indicator | Before (Excel + email) | After (custom platform) |
|---|---|---|
| Weekly admin time | ~60 h | ~38 h |
| Data-entry errors / month | ~45 | ~13 |
| Order processing time | 3.2 days | 1.1 day |
| Real-time visibility | no | yes |
| Annual software cost | ~0 (hidden) | 9,520 EUR (maintenance) |
The upfront investment: 68,000 EUR of development, plus 14% maintenance (9,520 EUR/year) for support and evolutions.
ROI calculation, item by item
ROI is not just hours saved: it sums direct gains (time), indirect gains (errors, delays) and strategic gains (capacity to grow without hiring).
| Gain item | Basis | Annual gain (EUR) |
|---|---|---|
| Time saved | 22 h/wk x 42 EUR/h loaded x 46 wks | ~42,500 |
| Errors avoided | -32 errors/month x ~120 EUR | ~46,000 |
| Reduced client delay | estimated retention + upsell | ~15,000 |
| Total gross annual gains | ~103,500 | |
| Annual cost (maintenance) | -9,520 | |
| Net annual gain | ~94,000 |
With a 68,000 EUR investment and a ~94,000 EUR net annual gain, the theoretical payback is under 12 months on total gains. Counting only conservative time savings (~48,000 EUR/year), payback comes out at ~17 months - the range to present to an investment committee.
The 3-year TCO
A solid investment case reasons in total cost of ownership, not just upfront cost.
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| Element | Year 1 | Year 2 | Year 3 | Total |
|---|---|---|---|---|
| Initial development | 68,000 | 0 | 0 | 68,000 |
| Maintenance (14%) | 9,520 | 9,520 | 9,520 | 28,560 |
| Hosting | 2,400 | 2,400 | 2,400 | 7,200 |
| Cumulative TCO | 79,920 | 89,440 | 98,960 | 103,760 |
| Cumulative gains (conservative) | 48,000 | 96,000 | 144,000 | 144,000 |
From year 2, cumulative gains exceed cumulative TCO. Over 3 years, the net balance is positive by ~40,000 EUR in the conservative scenario, far more in the full scenario.
Mini case study
Sarah, COO of a logistics firm in Rotterdam, must convince the board. She applies the method: cost of the status quo (22 h/wk wasted = ~48,000 EUR/year), direct and indirect gains, an 8% discount rate. Over 3 discounted years, the project's net value is ~+55,000 EUR, with a conservative 17-month payback. She presents a single slide: investment 68,000 EUR, conservative net annual gain 48,000 EUR, payback 17 months, 3-year TCO 104,000 EUR. The board approves in one meeting.
FAQ
How do you calculate custom software ROI? Add time gains (hours x loaded hourly cost), indirect gains (errors avoided, delays cut) and subtract annual cost (maintenance + hosting). Relate the total to the upfront investment to get payback.
What payback is acceptable in 2026? A 12- to 24-month payback is considered solid for a business platform. Our case comes out at ~17 months in the conservative scenario, under 12 months in the full scenario.
What is TCO and why use it? Total cost of ownership sums development, maintenance (often 12-18%/year) and hosting over 3 years. It avoids underestimating real cost and comparing a quote to a falsely free status quo.
How do you cost the status quo? Measure hours lost to double entry and corrections, multiply by loaded hourly cost (~40-45 EUR), add the cost of errors and delays. The Excel status quo is never free.
Should future gains be discounted? Yes for a rigorous case: a 6-8% discount rate brings years 2 and 3 gains to present value. It makes the business case credible before a board.
Let's scope your project. Send us your volumes, admin hours and friction points, and we quote ROI, payback and 3-year TCO in a board-ready case. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
