ROI Calculations¶
ROI calculations in ValuePact are built on driver trees, formulas, and scenario modeling. They translate qualitative value hypotheses into quantified, auditable financial projections.
Who this is for¶
End User Executive Admin
Prerequisites¶
- A ValuePact account with identified value drivers or hypotheses
- The account's industry and value pack configured
- At least one formula available in the account's value pack
Overview¶
The ROI calculator is powered by Layer 4 agentic workflows and the Layer 3 formula engine. It resolves value trees from the knowledge graph, substitutes prospect-specific variables, evaluates mathematical expressions safely, and runs sensitivity analysis.
Driver trees¶
A driver tree decomposes high-level value into levers and metrics. For example, a SaaS value tree might look like:
SaaS Platform Value
├── Cost Efficiency (35%)
│ ├── Infrastructure optimization
│ └── Tool consolidation
├── Revenue Growth (40%)
│ ├── New ARR
│ └── Expansion ARR
└── Retention (25%)
├── Churn reduction
└── NRR improvement
Each node links to a formula that computes a monetary value from baseline and target inputs.
Formulas¶
Formulas are stored per value pack and evaluated using safe numeric expression evaluation. A formula defines:
- Inputs — variables such as
affected_fte_count,hours_saved_per_fte_weekly - Expression — a mathematical formula such as
affected_fte_count * hours_saved_per_fte_weekly * 52 * fully_loaded_cost_per_hour - Outputs — computed values such as
annual_savings,payback_months - Validation rules — constraints such as
payback_months <= 36
Example formula from the Enterprise SaaS value pack:
annual_savings: affected_fte_count * hours_saved_per_fte_weekly * 52 * fully_loaded_cost_per_hour
net_value: annual_savings - implementation_cost
payback_months: implementation_cost / (annual_savings / 12)
Calculator usage¶
- Open the account's Value Studio workspace.
- Select the ROI Calculator tab.
- Choose a scenario: Conservative, Expected, or Optimistic.
- Edit variables in the Variables panel. Defaults are populated from the value pack.
- Click Calculate ROI.
- Review the summary card: NPV, IRR, payback period, and total ROI percentage.
Scenario modeling¶
| Scenario | Use case | Typical adjustment |
|---|---|---|
| Conservative | Risk-averse planning | 80% of expected benefit, 120% of cost |
| Expected | Standard planning | Baseline assumptions |
| Optimistic | Best-case planning | 120% of expected benefit, 90% of cost |
Sensitivity analysis¶
Toggle Sensitivity Analysis to run a Monte Carlo simulation across key variables. The output shows:
- Tornado chart — which variables have the largest impact on NPV
- Probability distribution — likelihood of achieving target ROI
- Break-even thresholds — input values required for payback within 12 or 24 months
Benchmark comparison¶
After calculation, the platform fetches industry benchmarks from Layer 6. The comparison card shows where the account's projected ROI, payback, and NPV rank against peers.
| Percentile | Interpretation |
|---|---|
| Below p25 | Conservative relative to peers |
| p25–p75 | Typical range |
| Above p75 | Aggressive but achievable with strong evidence |
Formula validation rules¶
Every formula enforces validation rules at calculation time. Rules protect against unrealistic assumptions and ensure defensible outputs.
Common validation rule patterns:
| Rule type | Example | Failure message |
|---|---|---|
| Range check | hours_saved_per_fte_weekly <= 40 | "Hours saved cannot exceed a full work week" |
| Greater than | target_yield_pct > current_yield_pct | "Target must exceed current baseline" |
| Payback cap | payback_months <= 36 | "Payback exceeds 36-month threshold" |
| Non-negative | annual_savings >= 0 | "Savings cannot be negative" |
When a rule fails, the offending variable is highlighted in red and a tooltip shows the rule text. The calculation is blocked until the input is corrected or the rule is waived by an admin.
Permissions required¶
| Role | Permission | Scope |
|---|---|---|
| Admin | Configure formulas and value packs | Organization |
| User | Run calculations and edit variables | Assigned accounts |
| Executive | View results and benchmarks | Organization or assigned accounts |
value_model:write to edit variables; value_model:read to view.
Limits and guardrails¶
Limit Formula evaluation timeout is 5 seconds per expression.
Limit Sensitivity analysis runs up to 10,000 Monte Carlo iterations.
Limit A maximum of 20 active formulas can be attached to a single account's value model.
Troubleshooting¶
Issue: ROI calculation returns 'validation failed'
Cause: An input violates a formula validation rule, such as payback_months <= 36. Resolution: Check the red-highlighted variable in the Variables panel. Adjust the value to satisfy the rule, or contact an admin to relax the constraint if justified.
Issue: Benchmark comparison shows 'industry not found'
Cause: The account industry does not match a benchmark dataset in Layer 6. Resolution: Verify the account industry in Account Settings. If the industry is correct but no benchmark exists, the comparison card is hidden automatically.
Issue: Sensitivity analysis takes too long
Cause: The account's value model has deeply nested formulas or many linked drivers. Resolution: Reduce the iteration count in Settings > Analysis > Monte Carlo Iterations, or simplify the driver tree.
Issue: Formula output shows scientific notation instead of currency
Cause: The output unit is not set to currency or the display format is overridden. Resolution: Check the formula definition in Value Studio > Formulas. Ensure output_unit is set to USD or the appropriate currency, and verify the account's regional display settings.
Related pages¶
Escalation path¶
For formula configuration issues, contact your value pack admin. For calculation engine errors, open a support ticket with the calculation ID and tenant ID.