ROI vs. TCO Calculations: Pros, Cons, and Best Practices

ROI or TCO—which do you need for your sales effort? They are two terms that cannot be used interchangeably. Using TCO during your sales effort will help a prospect better understand the long-term cost of solution A versus solution B. Whereas, ROI measures the long-term value delivered over time. The main difference is cost versus value delivered.

Use ROI when…

  • Value is a key success factor in the buyer's journey
  • You're not comparing status quo to a replacement solution
  • You're presenting the value you're going to deliver to executives


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VisualizeROI Develops A Suite Of Interactive Applications That Span The Buyer’s Journey:

Lead Generation/Lead Nurturing

Maturity Assessment Tool, Pain Calculator (a la "Challenger Sale")

Early Sales Cycle

ROI Tools, TCO Tools

Late Sales Cycle

Pricing Calculator, Automated Proposal Generator

Post-Sale Tools

Quarterly Business Review Generator

VisualizeROI took a highly complex “bad bot” risk model in Excel and converted it into a slick online calculator that anyone can use and understand.

It’s an impressive tool that helps our sales and marketing teams attract prospects, and then accelerate them through the sales cycle.

Elias Terman
VP Marketing - Distil Networks

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