SAP S/4HANA Migration Payback Planner

Show executives how quickly an SAP S/4HANA program pays for itself. Combine implementation spend with annual savings and revenue uplift, set a benefit ramp, and review the payback timeline, multi-year net benefit, and ROI in one summary.

Total one-time spend for licenses, SI services, data migration, change management, and internal labor.
Run-rate cost reductions from retiring legacy systems, automation, and lower infrastructure spend.
Incremental gross margin expected from faster closes, better inventory accuracy, or improved CX.
Months between project kickoff and when savings begin to materialize; defaults to 6 months when blank.
Number of years to evaluate total benefit; defaults to 5 years if not provided.

Model is directional and assumes linear benefits. Validate with your SI partner, FP&A team, and steering committee before approving budgets.

Examples

  • $3,500,000 cost, $950,000 savings, $300,000 uplift, 9-month delay, 6-year window ⇒ Combined annual benefit (savings + uplift): $1,250,000.00 USD. Ramp-up delay before benefits: 9.0 months. Payback point: 42.6 months from project start. Net benefit over 6.0 years: $3,062,500.00 USD with ROI 87.50%. Revenue uplift included: $300,000.00 USD per year.
  • $2,200,000 cost, $600,000 savings, no uplift, default delay, 5-year window ⇒ Combined annual benefit (savings + uplift): $600,000.00 USD. Ramp-up delay before benefits: 6.0 months. Payback point: 50.0 months from project start. Net benefit over 5.0 years: $500,000.00 USD with ROI 22.73%.

FAQ

How should I treat ongoing subscription or AMS fees?

Include them in the annual operating savings input as negative savings if S/4HANA raises your run rate. That way the calculator nets the higher spend against legacy savings.

What if benefits phase in gradually across modules?

Average the expected savings during partial go-lives and extend the benefit delay so the monthly benefit used in the model mirrors your deployment roadmap.

Does the ROI include financing costs?

No. Financing, capitalized interest, and tax effects are excluded. Layer those into your business case separately if you are debt funding the migration.

Can I compare cloud and on-premises scenarios?

Yes. Run the planner for each architecture with its own implementation cost, savings, and ramp to highlight which path pays back faster.

Additional Information

  • Assumes savings accrue evenly once benefits start; adjust the delay field if adoption takes longer.
  • Annual revenue uplift should be entered net of delivery costs so the figure reflects incremental profit, not gross sales.
  • Net benefit subtracts the full implementation cost from cumulative savings within the chosen horizon and reports ROI as a percentage of the initial spend.
  • Results are expressed in USD and include both cost avoidance and revenue gains provided.

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