# Exercise: ROI Calculator Template

Create a ROI analysis for your next security investment using this template:

**Investment Costs:**

Initial purchase: $\_\_\_\_\_\_\_\_\_\_\_

Implementation: $\_\_\_\_\_\_\_\_\_\_\_

Training: $\_\_\_\_\_\_\_\_\_\_\_

Maintenance (annual): $\_\_\_\_\_\_\_\_\_\_\_

Total 3-year TCO: $\_\_\_\_\_\_\_\_\_\_\_

**Risk Reduction Benefits:**

Current ALE for targeted risks: $\_\_\_\_\_\_\_\_\_\_\_

Expected ALE after implementation: $\_\_\_\_\_\_\_\_\_\_\_

Annual risk reduction value: $\_\_\_\_\_\_\_\_\_\_\_

3-year risk reduction value: $\_\_\_\_\_\_\_\_\_\_\_

**Business Enablement Benefits:**

Operational efficiency gains: $\_\_\_\_\_\_\_\_\_\_\_

Reduced compliance costs: $\_\_\_\_\_\_\_\_\_\_\_

Revenue protection/enablement: $\_\_\_\_\_\_\_\_\_\_\_

3-year business enablement value: $\_\_\_\_\_\_\_\_\_\_\_

**Financial Analysis:**

3-year ROI: \_\_\_\_\_% (Total benefits ÷ TCO)

Payback period: \_\_\_\_\_ months

NPV (at % discount rate): $\_\_\_\_\_\_\_\_\_

**Intangible Benefits:**

[List key intangible benefits with qualitative descriptions]

By developing comprehensive financial models that account for both direct and indirect benefits while acknowledging uncertainty, security leaders can build credible business cases that withstand financial scrutiny and demonstrate security's business value.

***

(c)[Kayne McGladrey](https://kaynemcgladrey.com/) - [Get the full book "Cyber Risk is a Myth"](https://www.routledge.com/Cyber-Risk-is-a-Myth-A-Business-Approach-to-Integrated-Risk-Management/McGladrey/p/book/9781041249054)