📐 Calculation Formulas
💼 Productivity Gains Block 1
Productivity gains = Total legal team cost per year × Productivity gain with ILS%
Measures the value of time saved when legal teams automate routine work.
Current result—
🔒 Value Leakage Reduction Block 2
Value leakage reduction = Total annual contract value at risk × Leakage reduction with ILS%
Quantifies recovered value from reducing contract leakage.
Current result—
💶 External Spend Reduction Block 3
External spend reduction = Total outside counsel spend per year × Spend reduction with ILS%
Savings from reducing outside counsel reliance.
Current result—
🧩 Tool Consolidation Block 4
Tool consolidation = Annual spend on redundant point tools
Direct savings from retiring redundant solutions.
Current result—
🎯 Total & ROI Final
Total annual benefit = ( Prod. + Leak. + Spend + Tools ) × Conservative factor%
Year 1 ROI = ( Total − (License + Services) ) ÷ (License + Services) × 100
Net Annual Gain = Total − Annual license cost
Year 1 ROI includes one-off services. Net Annual Gain = benefits minus license only.
Total annual benefit—