How to calculate digital signature ROI in 7 steps

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With the increasing digitalization of business processes, many companies have turned to technological solutions that aim to increase efficiency and reduce operational costs. digital signature, in particular, has proven to be an essential tool in this scenario. But, How to calculate digital signature ROI?

Thanks to its ability to replace the traditional paper document signing process, this tool has been promoting extensive time optimization, in addition to providing a series of tangible benefits for companies. One of the most effective ways to measure these benefits is by calculating the ROI (Return on Investment) of digital signatures.

It is a fundamental metric for understanding the return an organization can obtain by adopting this technology. By calculating ROI, companies can more accurately assess the costs involved in implementing a digital solution and the gains it can generate, such as cost reduction, increased productivity and improved customer experience.

This article will address the topic, providing a clear step-by-step guide so you can make informed decisions about adopting this technology in your company.

Hidden Costs of Manual Signatures

Traditional signature processes may seem simple at first glance, but they involve a series of hidden costs that directly impact the efficiency and profitability of companies – making manual signature a somewhat expensive and considerably less efficient process compared to digital signature, which eliminates these barriers and provides greater savings and agility.

Paper costs

Although it may seem like a simple solution, the manual signature process involves a series of costs that are often not obvious at first glance. Paper usage, printing and document transportation are just some of the direct costs associated with this method.

Purchasing paper, maintaining printers, the cost of ink and the logistics of physically sending documents represent a significant expense for companies.

Printing and shipping costs

There are also indirect costs associated with manual signatures. The time spent printing and transporting documents can be high, especially when they involve multiple parties in different locations.

To illustrate, a company that needs to send contracts for signature in several states or countries will have to bear the cost of postage, courier or even travel, depending on the urgency. Not to mention the need for notarization, an additional step that requires time and resources.

Scanning and archiving costs

After documents are signed, there is the cost of scanning and archiving them, as paper documents need to be converted into digital formats for easy access and storage. The scanning process involves labor, equipment, and storage systems, which further increases operational costs.

These hidden costs make the manual process somewhat inefficient and extremely expensive in the long run. Digital signature, on the other hand, eliminates all these costs by providing a process of recognition and authentication more agile, economical and environmentally friendly.

How to Calculate Digital Signature ROI

Before adopting any digital solution, companies need to assess the financial return on investment. In the case of digital signatures, this analysis involves calculating the ROI, which allows comparing the traditional costs of manual signatures with the benefits obtained by digitizing the process. Check out each step required to perform this calculation correctly below:

Step 1: Understand the ROI of digital signatures

Before calculating the return on investment (ROI) of a digital enterprise signature solution, it is essential to understand the factors that influence this calculation, including the costs of manual signing and the benefits of automation.

Step 2: Calculate Total Cost of Ownership (TCO)

The first step in measuring ROI is to determine the Total Cost of Ownership (TCO), an indicator that considers all the costs involved in implementing and maintaining a digital system. To calculate the annual TCO of an e-signature, follow this formula:

  • multiply the number of contracts issued annually by the unit cost of each contract;
  • multiply the number of contracts per year by the average number of pages in each contract, by the factor 0,05 (average size of a digital contract in megabytes) and by the monthly cost of the software adopted;
  • add the values ​​obtained in the previous calculations to determine the total TCO.

Step 3: Identify software costs

When calculating the monthly cost of software, take into account factors such as initial acquisition cost, installation, integration, maintenance and possible updates.

Step 4: Determine ROI

With the TCO values ​​of manual and digital contracts in hand, use the following formula to calculate ROI: subtract the TCO of digital signature from the TCO of manual signature. Then, divide the result by the amount invested in the software and multiply by 100 to get the return on investment percentage.

Step 5: Find out the return period

To calculate the time required to recover the investment, subtract the TCO of the digital signature from the TCO of the manual signature and divide by the investment made in the software.

Step 6: Consider sustainable benefits

In addition to financial gains, digital signatures also have a positive impact on the environment. Companies various sectors have been adopting technological solutions that reduce the consumption of paper, water and electricity, contributing to sustainability. For reference, printing 10.000 A4 sheets is equivalent to the consumption of an entire tree, in addition to generating significant carbon emissions.

Step 7: Evaluate the results and decide on the investment

Once the ROI calculation is complete and environmental impacts are taken into account, it becomes clear that digital signatures offer, in addition to savings and efficiency, several benefits from a sustainability perspective. Adopting this solution represents a strategic step forward for companies seeking modernization and environmental responsibility.

Practical example: how to calculate the ROI of digital signatures in your company

Consider a company that formalizes 240 contracts per year. model Traditionally, each contract involves costs for paper, printing, shipping, notarization, scanning, and operational work. 

Conservative estimates indicate that the average cost of a single manual contract can reach R$67,00, based on the composition below.

ItemEstimated cost per contract
Paper and envelope (when purchased separately at stationary store)2,00 BRL
Print (5 pages, considering the average of R$ 1 per unit)5,00 BRL
Shipping (Post Office with AR)20,00 BRL
Notarization (average value according to the this year's table)10,00 BRL
Administrative work time (average based on average salaries)30,00 BRL
Total estimate67,00 BRL

Annual costs in the traditional model

  • Number of contracts: 240
  • Cost per contract: R$ 67,00
  • Annual total: 240 x R$67,00 = R$16.080,00

Now, look at the same scenario with the ZapSign Professional Plan, suitable for individuals and micro-entrepreneurs, which allows the sending of up to 240 documents per year for just R$ 358,80 / year (value corresponding to the date of this publication).

Annual costs with ZapSign

  • Annual investment: 358,80 BRL
  • Documents included: 240

Annual savings with digital subscription

  • Total savings: R$ 16.080,00 (traditional model) – R$ 358,80 (ZapSign) = 15.721,20 BRL

ROI calculation

ROI = (Savings – Investment) ÷ Investment × 100

ROI = (R$ 15.721,20 – R$ 358,80) ÷ R$ 358,80 × 100 ≈ 4.282%

In other words, for every real invested in digital signature with ZapSign, the company obtains a return of approximately 43,82 BRL. In addition to significant savings, adopting digital signatures provides agility, reduces errors and contributes to more sustainable practices.

⚠️ Also check out these related articles 👇

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Additional metrics to measure the impact of digital signatures

In addition to financial savings, adopting digital signatures brings a series of benefits that directly impact the efficiency and security of business processes. 

Time Savings

In addition to direct costs, one of the main benefits of digital signatures is time savings. Automating the signature process dramatically reduces the time required to send, sign, and return documents. This not only speeds up the business process, but also frees up employees to focus on higher-value tasks.

For example, while a manual signature can take days due to document submission and notarization, a digital signature can be completed in a matter of minutes. Faster completion of processes improves operational efficiency and customer experience, resulting in an additional return on investment.

Environmental impact

Another important benefit of digital signatures is their contribution to environmental sustainability. By reducing the use of paper, ink and transportation of physical documents, companies can reduce their environmental impact – an increasingly relevant factor for organizations, especially those committed to ESG (Environmental, Social and Governance) practices.

legal security

Digital signatures offer a higher level of legal security than manual signatures, since they are regulated by specific laws, such as Law 14.063/20 in Brazil, and have encryption mechanisms that guarantee the authenticity and integrity of signed documents – which reduces the risk of fraud and legal disputes, offering greater confidence to companies.

Enhanced Customer Experience

Digital signatures simplify the customer journey by eliminating bureaucracy and streamlining processes. With the ability to sign documents from anywhere and at any time, customers have greater convenience and speed, which contributes to a more satisfactory experience and loyalty.

Reduction of operational errors

By automating the signature process, the company minimizes human errors, such as incorrect filling, loss of documents and the need for rework – which ensures greater accuracy and compliance in records, reducing administrative problems and legal risks.

Adopting digital signatures offers significant benefits to businesses, from cost reduction to increased productivity and legal certainty. Calculating the ROI of digital signatures is an effective way to justify the investment in this technology and measure its real impact on business processes.

As we have seen, the costs of manual signatures can be considerably high, while digital signatures offer a more cost-effective, faster and more secure solution. By calculating the ROI of digital signatures, it is possible to clearly understand the tangible benefits that digital signatures can bring. new technologies provide.

Therefore, it becomes clear that the ROI in digital signatures offers a valuable indicator for measuring the results of this technological transition, and understanding how to correctly calculate this ROI is essential for making more strategic and advantageous decisions for your business.

If your company has not yet implemented a digital signature solution, it may be time to consider the positive impacts it can generate. If you want to implement a reliable and secure platform, click here and get to know ZapSign, a complete solution for the digital signature of documents with full legal compliance.

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