There's been a lot of LinkedIn chatter lately about how UX research doesn't always get the recognition it deserves. In my experience, most people outside the UX world see it as a nice-to-have, not a need-to-have. That's where ROI, or return on investment, calculations come in.
Calculating ROI isn't inherently a UX research function, but I think it makes sense for us to take the lead. Most UX researchers are familiar with the concept, but I often get questions about how to actually do it. They understand that ROI demonstrates how UX is a smart business decision by connecting better user experiences to stronger financial outcomes.
They also recognize that when done well, ROI demonstrates that UX isn’t just about making things look good or work better; it’s also about making money.
However, many researchers still struggle to clearly show how their work saves money, drives revenue, and supports business goals.
Whether you're trying to justify a bigger research budget or simply want your work to be taken more seriously, this post is for you. Let's get started.
For more on this topic, check out our free Business 101 for Researchers course
Calculating UX ROI: A 5-step framework
This is a step-by-step framework I put together to help explain everything ROI to my fellow UXers. These 5 steps have proven to work over and over again in the real world, so I hope you find them useful.
Step 1: Identify the problem and establish benchmarks
The first step in any ROI calculation is identifying the specific problem you're trying to solve. What's inefficient, frustrating, or costly for your users or organization? Once the problem is clear, gather data to understand the current state of things and use it as benchmarks to measure improvements.
Key questions to ask:
- What are the pain points or inefficiencies in the current experience?
- How are these issues impacting users, support teams, or the business at large?
- What data do you have access to establish a baseline (e.g., time spent, error rates, support calls, usability scorecards, conversion rates, etc.)?
Example benchmark:
In a file export workflow, a benchmark metric might be:
- Average time users spend completing the workflow
- Percentage of users encountering critical errors
- Total support hours logged related to export issues
Step 2: Define goals and expected outcomes
Once you've identified the problem and established benchmarks, set clear, measurable goals for your project. These should reflect both user-centered improvements and business-facing outcomes.
Key considerations:
- What specific improvements do you aim to achieve (e.g., time savings, reduced errors, increased conversions, etc.)?
- How do these improvements align with organizational goals, such as saving money or driving revenue? (It's almost always saving money or driving revenue. Hahahaha.)
Example goals:
- Increase conversion rate from 5% to 10% (revenue)
- Cut support calls by at least 15% (savings)
- Increase feature adoption rate by 20% (revenue)
Related Reading: Showing the Value of Research Guide
Step 3: Gather data to estimate ROI
With goals in mind, start collecting the organizational data you'll need to estimate the financial impact of your UX improvements. This involves quantifying both the Return (financial benefit) and the Investment (project costs).
What to include:
- Current metrics: Baseline data collected in Step 1.
- Projected improvements: Expected changes based on research, competitor benchmarks, or past projects.
- Costs: Total project expenses, such as participant recruitment, team hours, and development costs.
Example data points:
- User time savings due to a simplified workflow
- Fewer support hours needed because of reduced errors
- Costs associated with the redesign (e.g., the cumulative cost of the UX efforts involved)
Tracking UX's time is critical for calculating ROI. It's a merit-based method that keeps UXers accountable, creating a virtuous cycle of responsibility and fostering high work quality.
Related reading: Customer Journey Mapping Templates + Examples
Step 4: Calculate ROI and convert to money
Once you have that stuff, it's time to perform the calculations. Use the standard ROI formula:
Break it into smaller steps if needed:
- Calculate user time savings or revenue increases.
- Quantify operational savings, such as reduced support costs.
- Add these together to determine the total benefit (Return).
- Subtract the project cost (Investment) and plug the numbers into the formula.
Finally, once you have your ROI percentage, convert that to money. Use the standard conversion formula:
✏️ Note: Not all project ROIs can be converted to money. If that’s true in your case, just skip this last conversion step. That said, I encourage you to find ways to tie your work back to money if possible.
Step 5: Communicate results effectively
The final step is sharing your findings in a responsible way that resonates with your audience. Most stakeholders care about financial outcomes, so focus on the metrics that align with their priorities. Use visuals and clear language to tell a compelling story.
Tips for presenting ROI:
- Start with the problem: What issue did we address, and why did it matter?
- Highlight key metrics: Time saved, cost reductions, revenue generated, etc.
- Be transparent: Share your assumptions, limitations, and calculations. (more on this later)
Example summary for stakeholders: By redesigning this workflow, we're projected to save ~5,000 user hours and ~320 support hours each month, resulting in an annual ROI of 882.7%. After adjusting for the internal spend of the team's effort, this equates to ~$660,000 in net annual benefits. This means, with a project cost of ~$75,000, the redesign delivers a net monetary benefit of $585,000 annually. For every dollar spent on the project, the company gains ~$8.80 in return. These improvements are predicted to improve user satisfaction and also deliver a new revenue stream.
Simple real-world example: A step-by-step breakdown
Let's demonstrate how ROI can be calculated using a real-world example. Imagine you are working on improving a university's online registration form. The current form is confusing, and students frequently call the support center for help completing it. This isn't just an inconvenience—it's costing the university money.
The problem and benchmarks
- Students call support because the form is unclear.
- Each call takes around 15 minutes to resolve on average.
- Support staff are paid $26.44 per hour.
- Total time spent on calls is 940 hours / semester
Cost of support calls:
Goal-based solutions
- The registration form is redesigned to make it easier for students to use.
- After the redesign, time spent on calls drops to 280 hours per semester.
Measure the savings
Time saved:
Cost savings:
Calculate ROI and convert to money
Cost of the redesign project:
Classic ROI Formula:
Calculation:
Convert to Money formula:
Conversion calculation:
Communicate the results
By improving the registration form, we're projected to save 660 support hours each semester, resulting in a cost savings of ~$17,450 per semester. With a project cost of ~$10,000, this delivers an ROI of ~74.5%, which equates to a net benefit of ~$7,450 per semester.
This results in a net annual benefit of ~$14,900. For every dollar spent on the project, the university gains ~$1.75 in return. These changes not only reduce operational costs but also enhance the student experience by streamlining a previously frustrating process.
I hope you can see how simple that is. You've got a clear, measurable result that's easy to explain to stakeholders. This is exactly how you can show the business value of UX research in a way that resonates with non-UXers. No talk about cognitive load or micro animations here (ha).
Now that we've tackled a straightforward example, let's take it up a notch and walk through a more complex real-world scenario.
Related reading: The UXR Field Guide
Complex real-world example: A step-by-step breakdown
Here's an example that is more like what you might find in the real world. Imagine you're working on a complex web application used by architects, engineers, and designers to create detailed 2D and 3D models. This application handles everything from drawing and editing blueprints to rendering realistic simulations of structures. Users rely on it daily for mission-critical tasks, but one of the workflows—exporting finalized project files—is causing headaches. It's slow, error-prone, and often leads to frustration.
Your goal is to redesign the workflow to make it more efficient, reduce errors, and decrease the number of support tickets related to file export issues. While your bosses understand that the work is important, they have no concept of how it impacts the bottom line. They've been reluctant in the past to fund similar initiatives, so you've decided to calculate the ROI to present a more transparent case to your stakeholders.
The problem and benchmarks
- The file export workflow involves 12 steps, requiring users to specify settings like file format, compression, and coordinate systems.
- On average, users take 30 minutes to complete the process.
- Critical errors occur in 25% of export attempts, such as incorrect file formats or missing data, which results in unusable files.
- Support staff handles 400 hours of calls each month related to export issues.
- Support staff are paid $45 per hour on average.
- Downtime for users costs $120 per hour.
Monthly users of the export workflow:
Average number of export attempts:
Goal-based solutions
- Simplify the workflow to 8 steps.
- Reduce the critical error rate from 25% to 5%.
- Decrease average completion time from 30 minutes to 20 minutes.
Measure the savings
Pre-redesign, total user time spent:
Post-redesign, total user time spent:
Total time saved:
Calculate the Monetary Value of User Time Savings:
Pre-redesign, support hours:
Post-redesign, call volume drops by 80%:
Monthly support time savings:
Monthly cost savings:
Annual support cost savings:
Calculate ROI and convert to money
Combine user time savings and support savings:
Total annual benefit:
Total project cost: (including research, design, and development)
ROI formula:
ROI Calculation:
Convert to Money formula:
Conversion Calculation:
Communicate the results
By redesigning the file export workflow, we're projected to save ~5,000 user hours and ~320 support hours each month, resulting in an annual ROI of ~882.7%. With a project cost of ~$750,000, this equates to a net annual benefit of ~$6,615,000.
This means the project delivers a net benefit of ~$6,622,800 annually. For every dollar spent on the project, the company gains ~$8.83 in return. These improvements are predicted to enhance user satisfaction, reduce operational inefficiencies, and deliver a new revenue stream.
This example is closer to what I see in the real world because it involves both user behaviors and operational costs to connect UX improvements to actual financial outcomes. I know that was a bit more detailed, but I hope you can see how all the moving parts come together into a straightforward story.
My hope is that by working through this example, you can extrapolate the methodology and apply it to your own day-to-day work.
Common pitfalls in ROI calculations (and how to avoid them)
Even with a clear framework, calculating ROI can feel like walking a tightrope. It's easy to slip up, whether by using overly optimistic estimates or leaving out important details. Here are the most common pitfalls I've seen UX researchers run into—and how to avoid them.
1. Overestimating or Underestimating ROI
The Problem
It's easy and common to inflate your numbers when extrapolating these calculations. A rule of thumb I go by is to round down and be conservative with your projections when in doubt.
How to Avoid It
- Base your calculations on historical data, user analytics, and/or industry benchmarks.
- Use ranges (e.g., low to medium) to provide context and flexibility.
- Be transparent about your assumptions and the sources of your data.
2. Focusing Only on Direct Benefits
The Problem
ROI is often calculated using clear metrics like revenue or time savings, but this leaves out the user.
Just because we are speaking in the language of the business doesn't mean we ignore our users.
How to Avoid It
- Triangulate your ROI numbers with qualitative data, like user testimonials or feedback trends.
- Highlight how indirect benefits (e.g., happier users leading to higher retention) connect to long-term financial outcomes.
3. Ignoring Long-Term Impact
The Problem
Many ROI calculations focus on immediate gains, which can undersell the long-term value of UX improvements. (see pitfall #1) Some benefits, like reduced churn or increased lifetime customer value, take time to materialize.
How to Avoid It
- Calculate ROI on a continuous basis. That way, you can report on multiple timeframes, such as six months, one year, and three years.
- Include cumulative benefits when presenting results to show the ongoing impact of your work.
4. Failing to Account for Total Costs
The Problem
Omitting hidden or recurring costs—like ongoing maintenance, training, or additional tools—can lead to overly optimistic ROI estimates.
How to Avoid It
- Make a detailed list of all project-related costs, including indirect expenses.
- Factor in recurring costs, such as software subscriptions or updates, into your calculations.
- Be upfront about what's included and excluded in your investment figure.
5. Poor Communication of Results
The Problem
Even a rock-solid ROI calculation won't resonate if it's full of jargon, overly complicated, or missing context. Stakeholders might tune out if they don't immediately see why your work matters to them.
How to Avoid It
- Tailor your presentation to your audience. Use plain language and focus on the metrics they care about most.
- Create visuals like charts, tables, or infographics to simplify complex data.
- Start with the big picture (e.g., "We saved $500,000 in operational costs") before diving into details.
Calculating the ROI of UX: What's next
The examples we've walked through are just the beginning. My hope is that you'll take the framework and methodology outlined here and apply it to your own projects. Start with something simple, build confidence, and then tackle more complex scenarios. The more you practice, the easier it will be to quantify the impact of your work and make a compelling case for UX at every level of your organization.
Now it's your turn. What projects are you working on where ROI could help tell your story? Give it a shot—you might be surprised at the difference it makes.
Further Resources
