Cost Savings Calculator

About this calculator

This calculator computes the amount and percentage saved by comparing a new cost against a baseline cost — the straightforward math is baseline minus new cost for the dollar amount saved, and that dollar amount divided by the baseline for the percentage saved. Despite the simplicity, keeping the baseline consistent matters: comparing against the wrong reference point (list price versus negotiated price, for instance) can make a savings claim misleading even when the arithmetic is correct.

Procurement teams, operations managers, and consumers alike use this figure to evaluate vendor negotiations, subscription downgrades, energy-efficiency upgrades, or any decision where the pitch is framed around avoided cost rather than new revenue. This calculator takes your original and new cost to compute both the dollar savings and the percentage saved.