T
Hndy Tools

Feature ROI Calculator

Quantify the return on building a new SaaS feature — development cost, payback period, and priority score in one view.

SaaS
Business
Development

Feature Details

About This Tool

Every product team faces the question: "Is this feature worth building?" The Feature ROI Calculator gives you a data-driven answer by combining development cost, projected revenue, and retention impact into a single priority score — so you can compare features objectively.

For the foundational decision of whether to build a tool yourself, pair this with our Buy or Build Calculator. If you're weighing content investment instead, check the Content ROI Calculator.

All calculations happen in your browser — no data is sent to any server.

How It Works

Development Cost = Hours × Hourly Rate
Monthly Revenue Gain = New Customers × Revenue / Customer
Annual ROI = ((Revenue Gain × 12 + Retention Revenue) − (Dev Cost + Maint × Rate × 12)) ÷ (Dev Cost + Maint × Rate × 12) × 100
Payback Period = Development Cost ÷ Monthly Revenue Gain (in months)
Priority Score = min(100, ROI Score + Payback Score) — higher ROI and faster payback increase the score

When retention improvement is provided, the calculator estimates additional annual revenue from existing customers who stay longer. Score ranges 0–100: above 50 means build, below 30 means deprioritize, 30–50 means evaluate strategic fit.

Frequently Asked Questions (FAQ)

What should I include in the development cost?
Include all direct development time multiplied by your hourly rate: coding, design, testing, and deployment. If you use a team, use a blended hourly rate. Don't forget to account for code review and QA time — those are often the hidden cost drivers.
How do I determine my hourly rate?
For freelancers, use your actual billing rate ($50–200/hr is typical). For employees, divide your total annual compensation (including benefits) by 2,000 hours. If unsure, $75–100/hr is a reasonable default for a SaaS developer in most markets.
How do I estimate new customer conversions?
Start with a conservative estimate based on similar features you've shipped. Look at your current conversion funnel, industry benchmarks, or customer requests. When in doubt, use the lower bound — underestimated revenue leads to better surprises than overestimated.
Why is retention improvement optional?
Not every feature directly impacts retention. When a feature reduces churn, that value compounds over time. The calculator bakes retention improvement into annual revenue so you can measure the long-term impact alongside direct revenue gains.

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