This spreadsheet provides a model to estimate the economic costs and benefits of software testing.
For an explanation of its use, please see "What's my Testing ROI?"
http://www.sourceforge.org/ta-roi/Whats-My-Testing-ROI.pdf
An estimate of costs and benefits over a two year period is calculated from
the values you enter for parameters on each tab.
Gold boxes indicate where you enter a value.
Enter zero for any parameter which is not applicable in your situation.
Parameters
Enter values as indicated. Select the cell for what to enter.
Total ROI
Company
Project
Start Date
Tooling Costs
Vendor
Product
URL
Base License
Additional Seats
Additional Virtual Users
Other
Vendor name
Test Automation product name
Vendor URL
Cost of software license
Incremental cost of seat or other capacity
Incremental cost of virtual user or other capacity
Conversion, support, training, etc.
Assumption
Units
Definition
11.6
4.0
7.9
0.2
3.9
2.0
4.0
Parameters
hours
hours
hours
hours
hours
hours
hours
2
factor
Expected improvement in bug removal rate
7%
percent
Observed percent of fixes that cause new bugs
0
hours
Observed outage hours, annualized
1,000 dollars/hour Average cost/loss of one hour of unscheduled downtime
1 incidents Observed production/field incidents, annualized
1,000 dollars each Average cost/loss of one production or field bug report
Time-To-Market Parameters
Note: Enter zeros in this section if your company does not offer commercial software products
Total market for product
$
dollars
Addressable total market for your product, per release
Maximum market share
0.0%
percent
Market share, earliest possible release
Overhead rate
$
dollars
Average daily overhead cost
Prepared 07/21/2015
Page 2 of 12
Tooling Costs
Acme Widget
Widget Master
URL
Unit Cost
Base License
Additional Seats
Additional Virtual Users
$
$
$
Other
Total Test Automation Software
Training
Equipment
$
$
Other
Unit
25,000
Site
2,500
Person
500 Virtual User
-
2,500
-
Session
Other
Total Annual Cost
Prepared 07/21/2015
$
$
0
-
Cost
License
Frequency
1 $
4 $
500 $
25,000
10,000
250,000
Once
Once
Once
0 $
$
285,000
Once
1 $
0 $
2,500
-
Once
Once
0 $
Quantity
Once
287,500
Once
1 $
57,000
Annual
0 $
$
Annual
57,000
Page 3 of 12
Company
Project
Start Date
Total ROI
My Company
My Product
Start Date
$
$
$
344,500
502
(343,998)
(324,130)
Project ROI
Months to Breakeven
Vendor Recommendation
Company
Product
Number of Base Licenses
Number of Seats
Number of Virtual Users
Prepared 07/21/2015
24
-100%
0
Acme Widget
Widget Master
1
4
500
Page 4 of 12
Quarterly ROI
Project
Totals
Test Automation Benefits
Productivity
Initial Productivity Effects
Recurring Productivity Effect
$
$
(0)
3
Effectiveness
Outage Cost Reduction
Incident Cost Reduction
Bad Fix Cost Reduction
Total Effectiveness
$
$
$
$
500
500
$
$
Benefit Totals
Quarterly
Cumulative
$
$
502
502
Tool License
Annual Tool Support
Training
New Equipment
Other
$
$
$
$
$
285,000
57,000
2,500
-
Cost Totals
Quarterly
Cumulative
$
$
344,500
344,500
$
$
(343,998)
(343,998)
-100%
($324,130)
Breakeven Month
24
Prepared 07/21/2015
Page 5 of 12
Quarterly ROI
YEAR 1
1Q
2Q
3Q
4Q
$
$
(0) $
- $
(0) $
- $
(0) $
- $
(0)
-
Effectiveness
Outage Cost Reduction
Incident Cost Reduction
Bad Fix Cost Reduction
Total Effectiveness
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Benefit Totals
Quarterly
Cumulative
$
$
(0) $
(0) $
(0) $
(0) $
(0) $
(0) $
(0)
(0)
285,000
$
$
$
2,500
- $
$
$
287,500 $
287,500 $
- $
287,500 $
- $
287,500 $
287,500
$
$
(287,500) $
(287,500) $
(0) $
(287,500) $
(0) $
(287,500) $
(0)
(287,500)
-100%
-100%
-100%
-100%
Prepared 07/21/2015
Page 6 of 12
Quarterly ROI
YEAR 2
1Q
2Q
3Q
4Q
$
$
Effectiveness
Outage Cost Reduction
Incident Cost Reduction
Bad Fix Cost Reduction
Total Effectiveness
$
$
$
$
125
125
$
$
$
$
125
125
$
$
$
$
125
125
$
$
$
$
125
125
$
$
$
$
$
$
$
$
Benefit Totals
Quarterly
Cumulative
$
$
- $
1 $
- $
1 $
126 $
125 $
- $
1 $
126 $
251 $
126 $
377 $
126
502
57,000
$
$
57,000 $
344,500 $
- $
344,500 $
- $
344,500 $
344,500
$
$
(56,874) $
(344,375) $
126 $
(344,249) $
126 $
(344,123) $
126
(343,998)
-100%
-100%
-100%
-100%
Prepared 07/21/2015
Page 7 of 12
Effectiveness
Effectiveness Parameters
Test Effectiveness Improvement
Average Outage cost, $ per hour
Baseline Outage hours, annual
Average Incident cost, $ each
Baseline incidents, annual
Bad Fix Rate
Availability Effect
Unscheduled Downtime, hours per year
Availability, in "Nines"
Total Annual Outage Cost
Prepared 07/21/2015
$
$
2
1,000
0
1,000
1
7%
Automated
Difference
0.0
0.0
0.0
100.000%
100.000%
0.000%
- $
- $
-
Manual
1
1,000 $
1
500 $
0
$
-1
(500)
0
$
0
$
500 $
(500)
Page 8 of 12
Productivity
Productivity Parameters
Test Scenario Design Hours
Manual
Automated
4.0
4.0
Difference
0.0
0.0
3.9
2.0
7.9
0.2
4.0
-7.9
3.7
-2.0
1
1
1
1
0.0
0.0
1
10%
33%
1
10%
33%
0
0%
0%
4
4
4
0
4
4
(4)
0
4 $
4 $
0
4
0
0
-
0
0
1
0
1
0
1
(4)
(3)
5 $
3 $
(3)
(3)
4.0
12.0
180
Prepared 07/21/2015
8%
-49%
Page 9 of 12
Time-To-Market Effect
Initial Test Cycle
First effected quarter
Initial test effort reduction
Initial Test Cycle Time
Value of initial test cycle reduction
Subsequent Test Cycles
First effected quarter
Recurring test effort reduction
Recurring Test Cycle Time
Value of recurring test cycle reduction
Release Effect
Initial Release revenue impact
Subsequent Release revenue impact
Prepared 07/21/2015
$
$
$
Cycle Time
0.0%
1
180
-
Manual
Automated
Difference
5
8%
180
14
-
-89
-
$
$
194
9
-49%
180
91
Page 10 of 12
Notices
The formulas and formatting in this spreadsheet are Copyright 2005, mVerify Corporation
and 2011, Robert V. Binder.
Your usage of the formulas contained in this spreadsheet (the "program" in the GNU
General Public License "GPL") is governed by the GNU GPL. This program is free software:
you can redistribute it and/or modify it under the terms of the GNU GPL as published by the
Free Software Foundation, either version 3 of the License, or (at your option) any later
version.
Please note that GNU GPL requires you to include this notice if you distribute this
spreadsheet or any derivative of it.
This program is provided in the hope that it will be useful, but WITHOUT ANY WARRANTY;
without even the implied warranty of MERCHANTABILITY or FITNESS FOR A
PARTICULAR PURPOSE. See the GNU General Public License for more details.
The full GNU General Public License may be viewed at
http://www.gnu.org/licenses/gpl.html
file:///var/www/apps/conversion/tmp/scratch_5/277101664.xlsx
07/21/2015
Version
0.8
1.0
1.1
Date
4-Sep-2005
3-Jun-2009
12-Apr-2011
Note
Initial release
Corrected reported errors, first GPL version
Add How to tab, release notes, Published on Source Forge