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How Do You Calculate Intranet ROI? Formulas, Assumptions and a Worked Example
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How Do You Calculate Intranet ROI? Formulas, Assumptions and a Worked Example

You calculate intranet ROI by adding four benefits and subtracting the full cost. The benefits are time saved finding information, HR and IT tickets avoided, tools retired and faster onboarding. The costs are licences, build and internal time. ROI equals net benefit divided by total cost. Use conservative assumptions, show every formula, and let finance change the inputs.

Last updated: 12 October 2026

Many intranet ROI calculators show a single savings figure without the formula behind it. Finance teams rarely accept that. This guide shows each formula, the assumption it relies on and a worked example for a 500-person company.

What is intranet ROI?

Intranet ROI, or return on investment, is the financial value an intranet creates compared with what it costs to build and run. It is usually measured over one to three years. The value comes mainly from time employees stop wasting, work support teams stop repeating and software the organisation stops paying for.

The basic formula is:

ROI (%) = (Total benefits − Total costs) ÷ Total costs × 100


A credible ROI case states every input, uses ranges rather than single figures and counts only benefits the organisation can observe.

Which benefits should an intranet ROI calculation include?

Include four benefits that can be measured before and after launch: time saved searching for information, support tickets avoided, tools retired and faster onboarding. Leave out softer benefits, such as culture or engagement, from the core figure. Mention them separately, because finance teams discount numbers they cannot verify.

Benefit What it measures How to observe it
Time saved Hours employees stop spending looking for information Survey before and after launch, search analytics
Tickets avoided HR and IT questions answered by the intranet instead Help-desk ticket volume by category
Tools retired Software subscriptions the intranet replaces Contract and invoice records
Faster onboarding Days sooner a new joiner becomes productive Manager assessment at 30, 60 and 90 days

How do you calculate the value of time saved?

Multiply employees by hours saved per week, working weeks per year and the loaded hourly cost. Then apply a capture rate, because not every saved minute turns into productive work. A 50 percent capture rate is a common, conservative choice. McKinsey Global Institute found in 2012 that interaction workers spend nearly 20 percent of their week looking for information or colleagues.

Loaded hourly cost = Average annual salary × 1.3 ÷ 1,800 working hours
Time-saved value = Employees × Hours saved per week × 46 weeks × Loaded hourly cost × Capture rate


The 1.3 multiplier adds employer costs such as tax and benefits. Adjust it to your country. Source: McKinsey Global Institute, The social economy (2012).

How do you calculate savings from fewer HR and IT tickets?

Count the tickets in categories the intranet can answer, such as policy questions, password guidance and how-to requests. Estimate the share the intranet will deflect, then multiply by the cost of handling one ticket. Use your own help-desk data for the baseline, because ticket cost varies widely between organisations.

Ticket savings = Eligible tickets per year × Deflection rate × Cost per ticket
Cost per ticket = Average handling minutes ÷ 60 × Loaded hourly cost of support staff


Typical eligible categories:

  • "Where do I find" questions about policies and forms
  • Benefits and leave rules
  • Standard IT how-to requests
  • Office and facilities information

How do you calculate savings from retired tools and faster onboarding?

Retired tools are the simplest benefit. Add the annual cost of every subscription the intranet replaces, such as an employee app, newsletter tool or old intranet licence. Faster onboarding is valued by the days sooner a new joiner reaches full productivity, multiplied by their daily cost and the number of joiners each year.

Tool savings = Sum of annual subscriptions retired
Onboarding value = Joiners per year × Days saved × Loaded daily cost × 50%


The 50 percent factor reflects that a new joiner is partly productive during those days. Our employee onboarding solution shows how a structured onboarding hub shortens the first weeks.

What costs belong in an intranet ROI calculation?

Include every cost over the same period as the benefits: platform or product cost, build and design, content migration, internal staff time, training and ongoing support. Include Microsoft 365 licences only if you are buying them for the intranet. If you are replacing an existing platform, our intranet replacement calculator compares old and new running costs. Most organisations already pay for them, so they are not an intranet cost.

Total cost = Software + Build + Migration + Internal time + Training + Support


Our intranet cost calculator estimates the cost side in a few minutes. The SharePoint intranet cost guide explains typical ranges by approach.

What does a worked intranet ROI example look like?

For a 500-person company, conservative inputs produce a first-year net benefit of roughly $150,000 against a cost of about $55,000. The largest benefit is time saved, even at only 20 minutes per employee per week and a 50 percent capture rate. Every input below is an assumption that finance can change.

Input Value
Employees 500
Average annual salary $50,000
Loaded hourly cost $36.11 ($50,000 × 1.3 ÷ 1,800)
Hours saved per employee per week 0.33 (20 minutes)
Capture rate 50%
Eligible HR and IT tickets per year 4,000
Deflection rate 30%
Cost per ticket $12
Tools retired per year $8,000
New joiners per year 60
Onboarding days saved 5
Line Calculation Year-one value
Time saved 500 × 0.33 × 46 × $36.11 × 50% $137,000
Tickets avoided 4,000 × 30% × $12 $14,400
Tools retired Annual subscriptions $8,000
Faster onboarding 60 × 5 × $288.89 × 50% $43,300
Total benefits $202,800
Total cost (product, build, migration, internal time) Assumed $55,000
Net benefit $202,800 − $55,000 $147,800
ROI $147,800 ÷ $55,000 269%


Figures are rounded. The loaded daily cost is $36.11 × 8 hours.

How do you make an intranet ROI case that finance will accept?

Make the case credible by using the organisation's own baselines, showing every formula, choosing conservative inputs and presenting a range. Show a low, expected and high scenario. Then commit to measuring the same inputs after launch. A case that predicts a modest return and proves it is more persuasive than a large, unverifiable figure.

  1. Baseline first. Survey time spent searching and pull ticket data before launch.
  2. Show three scenarios. Low, expected and high, with the inputs for each.
  3. Exclude soft benefits from the headline figure.
  4. Measure at 90 days and 12 months using the same method.

Our article on intranet and internal communication KPIs lists the metrics to track after launch.

faqs

What is a good ROI for an intranet?
A conservative intranet case often shows a payback within the first year. Treat any figure as credible only if each input comes from your own data.
How much time do employees waste looking for information?
McKinsey Global Institute reported in 2012 that interaction workers spend nearly 20 percent of their workweek looking for internal information or colleagues.
Should Microsoft 365 licences be included in intranet ROI?
Only if you buy them specifically for the intranet. Most organisations already own them for email and files, so they are not an intranet cost.
What is a capture rate in an ROI calculation?
A capture rate is the share of saved time that turns into productive work. Using 50 percent avoids overstating the benefit.
How do I measure time saved by an intranet?
Ask a sample of employees how long common tasks take before launch, then repeat the same survey three and twelve months after launch.
Can intranet ROI include employee engagement?
It can be mentioned, but keep it out of the headline figure. Engagement is hard to convert to money in a way finance teams accept.
Profile
Written by

Johnsi Jayasingh

Chief Innovation Officer | Intranet Design Specialist | Experience Engineering

Johnsi Jayasingh is a technology leader and Co-Founder & Chief Innovation Officer with over 20 years of experience in digital solutions. She specializes in Microsoft technologies, including SharePoint and the Power Platform, driving modern digital workplaces. She is known for turning complex technology into simple, high-impact user experiences.

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