The ROI of a software review: calculate costs and benefits [2026]

**The decision for or against [software recovery](/services/software recovery) is ultimately an economic one. ** Emotions such as frustration about the failed project or the desire for a "clean new beginning" should not be the basis for an investment decision. This article shows how to calculate the return on investment (ROI) of a rescue and make a sound decision.

The ROI formula for software recovery

Basic formula

ROI = (benefit - cost) / cost × 100%

The benefit of a software review consists of several components: avoided costs of a new development, faster time-to-market, preserved domain knowledge and avoided opportunity costs.

Price Comparison: Rescue vs. New developments

Software review

• Analysis and diagnosis: 10-20 %

• Stabilization: 20-30 %

• [Refactoring](/services/software recovery): 30-40 %

• Finished: 20-30 %

• **Total: 40-60% of new development * *

New development

• Requirements analysis: 10-15 %

• Design and architecture: 15-20 %

• Development: 50-60 %

• Testing and QA: 15-20 %

• Total: 100% (base)

Example calculation

Scenario: medium-sized e-commerce project

**Bereits invests:**250.000 € **Surved cost New development:**400.000 € **Surved cost Rescue:**180.000 € **Time-to-Market New development:**18 months **Time-to-Market Rescue:**6 months **Month sales loss:**15,000 €

Calculation:

Cost new development: 400,000 € + (18 × 15,000 €) = 670.000 €

Cost Rescue: €180,000 + (6 × €15,000) = €20,000

Saving through rescue: 670.000 € - 270.000 € = 400,000 € ROI of Rescue: (400.000 € - 180.000 €) / 180.000 € = **122 % * *

Factors that affect the ROI

FactorPositive influenceNegative influence

Code qualityGood basis availableMassive technical debt DocumentGut documentsNo documentation Team Knowledgeoriginal developer availableComplete knowledge loss ArchitectureModular StructureMonolithic Chaos Time-to-MarketTime pressure highTime is no factor

"The true ROI of a software review is not only in the saved costs, but also in the knowledge received and the time gained."

Hidden costs don't forget

ROI calculation often overlooks hidden costs:

• **Opportunity costs:**Delived business opportunities during development

• Knowledge transfer: Costs for incorporating new teams

• Data migration: Often underestimated in new developments

• Training costs: Users need to learn new systems

• Integration costs: Connection to existing systems

Conclusion: Data instead of abdominal feeling

The decision between rescue and new development should be based on a sound cost-benefit analysis. In most cases the bill shows: a professional software review is not only possible, but also economically the better choice.