Transportation, Freight & Distribution worked example

TMS ROI with tms implementation cost of 72,500 $: a worked example

Suppose tms implementation cost falls to 72,500 $. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate payback for a transportation management system using implementation cost, annual freight savings, and annual support cost.

The inputs for this scenario

  • TMS implementation cost: 72,500 $ (the input this scenario stresses; the baseline uses 145,000)
  • Annual freight savings: 98,000 $ / yr (held at the documented default)
  • Annual TMS support cost: 28,000 $ / yr (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Net annual savings = annual freight savings - annual tms support cost.
  • Years to payback works out to 1.04 years at these inputs, and this is the headline figure for the scenario.
  • Net annual savings works out to 70,000 $ / yr at these inputs.
  • TMS implementation cost works out to 72,500 $ at these inputs.
  • Five-year net savings works out to 277,500 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where tms implementation cost sits at 145,000 $ and the headline result is 2.07 years, this scenario comes in 50% below the baseline at 1.04 years.
  • It computes net annual freight savings (gross freight savings minus annual TMS support cost) and the simple payback period against the implementation cost. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Years to payback: 1.04 years (headline result)
  • Net annual savings: 70,000 $ / yr
  • TMS implementation cost: 72,500 $
  • Five-year net savings: 277,500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live TMS ROI calculator, set tms implementation cost to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.