Calculators tool

Managed IT ROI Calculator

Estimate the ROI of moving to managed IT.

Staff count that IT supports (end-users + executives).

people

All IT costs: salaries/contractors, software licenses, hardware, support contracts.

$/mo

Total hours of productivity-impacting outages in the last 12 months.

hrs/yr

Fully-loaded hourly cost (salary + benefits + overhead).

$/hr/person

Current IT costs (annual)

IT spend (salaries, licenses, support)$144,000
Downtime cost (24h × 30 staff)$46,800
Total$190,800

With managed IT (annual estimate)

MSP cost ($95–$145/user/mo)$34,200–$52,200
Residual downtime (~8h)$16,380
Total (midpoint)$59,580
Assumption: based on typical LA-market managed IT pricing of $95$145/user/mo (all-in). Your actual quote may differ with scope, stack, and contract terms.
Annual savings (net)
$131,220
vs. current total cost
Return on investment
+304%
on managed-IT spend
Downtime cost avoided
$30,420
~65% fewer outage hours
Payback period
4 months
to recoup annual fees

Planning estimate, not a quote. Downtime reduction uses an industry benchmark of 60–70% improvement with proactive managed services. "Annual savings" nets the midpoint MSP fee and residual downtime against your current IT spend plus downtime cost. Contact us for a firm number.

Ready for a real number? Elevate provides transparent per-user pricing for Los Angeles firms. Use the pricing estimator or book a strategy call.

Frequently asked questions

What is the typical payback period for switching to managed IT?

Most mid-market firms see a payback period of 6–18 months after transitioning to managed services. The savings come from reduced unplanned downtime, eliminated emergency IT labor rates, predictable monthly costs, and faster security incident containment.

Does this calculator account for cybersecurity incident costs?

The calculator models productivity-focused ROI: current IT spend, downtime losses, and managed service costs. For a full picture that includes breach risk reduction, run the Downtime Cost Calculator and the Data Breach Cost Estimator alongside this tool.

Want this handled for you?

Elevate manages IT & security for regulated Los Angeles firms.

Book a strategy call