ROI Calculator Methodology
How we derive value from automation and failure prevention. Use this to interpret and customize the analytics dashboard.
Inputs (Configurable)
| Parameter | Default | Description |
|---|---|---|
days | 30 | Analysis window (7–365) |
hourlyRateUsd | 120 | Engineering labor cost per hour |
incidentCostUsd | 1500 | Cost per prevented failure (production incident, rollback) |
baselineFailureRate | 0.20 | Expected failure rate without AgentMD (e.g., 20%) |
platformCostMonthlyUsd | 40 | Your AgentMD subscription cost per month |
Formulas
Labor value (automation)
Each execution saves ~8 minutes of manual run/triage time. Gross labor value = hours saved × hourly rate.
Failure prevention value
If your observed failure rate is lower than the baseline, the difference represents failures prevented by AgentMD. Value = prevented failures × incident cost.
Gross and net value
Gross value = labor value + failure value. Net value = gross value − platform cost. ROI multiple = gross / platform cost.
Confidence
- Low — < 80 executions in window
- Medium — 80–299 executions
- High — ≥ 300 executions
Caveats
- Labor value assumes 8 min/execution; adjust for your workflow.
- Failure prevention depends on a realistic baseline. Use 15–25% if you don't have historical data.
- Incident cost varies widely ($200–$10k+). Use your own post-mortem data when possible.
- Qualitative benefits (context-switching, onboarding, compliance) are not included.
API
GET /api/analytics/roi-report?days=30&hourlyRateUsd=150&incidentCostUsd=2000&baselineFailureRate=0.2&platformCostMonthlyUsd=40Response includes assumptions, metrics, value, and confidence.