Cybersecurity ROI Calculator

Payback period is calculated by dividing the total investment cost by annual benefits. For security investments, benefits include risk reduction (reduced breach probability × average breach cost), productivity savings, insurance premium reductions, and avoided compliance penalties. Most security investments should achieve payback within 1-3 years.

Net Present Value (NPV) calculates the total value of a security investment over multiple years, accounting for the time value of money. It discounts future benefits to present-day value (typically 8-12% discount rate) and subtracts total costs. A positive NPV indicates the investment creates value; higher NPV is better.

Risk mitigation percentage varies by control type: MFA typically reduces risk 30-50%, EDR/MDR solutions 40-60%, security awareness training 25-45%, and comprehensive SOC services 50-70%. Use vendor claims as a starting point, but adjust based on your specific environment and implementation quality. Our calculator provides scenario-based defaults.

Industry studies suggest 25-40% of organizations experience a significant security incident annually. Factors that increase probability: high-value data, large attack surface, low security maturity, recent incidents. Use our Data Breach Cost Calculator to estimate your specific breach cost, which this tool can import automatically.

Beyond risk reduction, consider: productivity savings from automation (reduced manual tasks, faster incident response), insurance premium reductions (10-25% with strong controls), compliance cost avoidance (audit fees, penalties), and operational efficiency gains. These "soft" benefits often add 20-40% to total value.