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How to Calculate the ROI of Custom Software or AI Automation in Colombia

The ROI formula, payback period and a real case with figures in pesos to know when custom software or an AI automation pays for itself.

In short

  • ROI (%) = ((total net benefit − total investment) ÷ total investment) × 100.
  • Net benefit adds two things: savings in hours and operating costs, and new revenue that comes from answering faster or serving customers 24/7.
  • In Colombian SMBs, well-scoped custom software usually pays for itself in 2 to 8 months, depending on how much manual work it replaces.
  • In the case of a distributor with 16 hours of manual work a day, the COP 9,500,000 investment was recovered in under two months.

Before investing in custom software or an AI automation, the right question isn't how much does it cost, but how long until it pays for itself. The good news: you can calculate it with data you already have.

The ROI formula

Return on investment compares what you gain with what you pay:

ROI (%) = ((total net benefit − total investment) ÷ total investment) × 100

Net benefit has two sources:

  • Operating savings: hours of manual work that disappear (quoting, checking inventory, copying data between WhatsApp and Excel) multiplied by what each hour of your team costs.
  • Additional revenue: sales that are lost today because you answer late, don't serve customers at night, or a customer got tired of waiting.

The calculation model in 4 steps

  1. Quantify your baseline: hours of manual tasks per month × staff cost per hour.
  2. Estimate the total cost of ownership: initial development + infrastructure + external services (messaging, AI models).
  3. Project revenue and efficiencies: after-hours sales, fewer cancelled orders, fewer errors.
  4. Calculate annual ROI and the payback period: the exact month when accumulated savings exceed the investment.

Calculate yours

Enter your own numbers. The result is shown in the currency of the country you have selected.

Case study: a distributor in Colombia

Scenario data

  • A team of 3 sales reps and 1 warehouse assistant.
  • Quoting and checking stock by hand takes them 4 hours a day per person: 16 hours a day, about 352 hours a month.
  • Average cost per hour (including benefits): COP 15,000.
  • Monthly cost of the manual operation: 352 × COP 15,000 = COP 5,280,000.

The custom solution

  • One-time development investment: COP 9,500,000.
  • Recurring monthly cost (servers, messaging and AI services): COP 250,000.
  • 75% of the manual tasks are automated: savings of COP 3,960,000 a month.
  • The assistant serves customers at night and captures sales with a net margin of COP 2,400,000 a month.

Results

Financial results of the case (values in Colombian pesos).
IndicatorCalculationResult
Monthly net benefit3,960,000 + 2,400,000 − 250,000COP 6,110,000
Payback period9,500,000 ÷ 6,110,0001.6 months
First-year net benefit(12 × 6,110,000) − 9,500,000COP 63,820,000
First-year ROI63,820,000 ÷ 9,500,000≈ 672%

Common mistakes when calculating ROI

  • Forgetting recurring costs: servers, official WhatsApp messaging and AI model usage.
  • Counting only saved hours: the sales you lose today usually weigh more.
  • Assuming 100% automation: there is always human work left; use 60–80%.
  • Not measuring afterwards: decide from the start which indicator you'll review every month.

Want the calculation for your company? Tell us about your process in the contact form or see our custom software service.

Frequently asked questions

How long does custom software take to pay for itself?

It depends on the manual work it replaces and the sales it recovers. In Colombian SMBs it's usually between 2 and 8 months; for very manual processes it can be less.

What data do I need to calculate ROI?

The hours per month your team spends on the task, the cost per hour, the sales you lose today, the development cost and the monthly running costs.

Sources

  1. K&T Code: custom software pricing
  2. Harvard Business Review: articles on AI return on investment

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