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Commercials, pricing & the business case1 / 2

2 min lesson

ROI / TCO framing and the seat-math objection

Answer "Which is the single most important variable to discount when building a Cursor ROI model and why?" Then point to the lesson detail behind your choice.

Step 1 of 2

A simple, defensible value frame

Keep the model so simple a CFO can poke at it without a spreadsheet. The whole frame is value created minus cost to own. Stay conservative on the inputs and the number survives scrutiny.

The frame an FE can defend in a procurement room
ROI value =
  fully-loaded engineer cost/hr
  × hours saved per engineer per period
  × realistic adoption rate        <-- discount this HARD
  × number of seats

Net value = ROI value
  - (seat cost + enablement/mentorship cost)

# Then: payback = net cost / monthly value created
Adoption is the honesty dial

The most common way these models lie is assuming 100% of engineers save 100% of the claimed hours on day one. Apply a realistic adoption rate (Box hit 85%+ daily - but over time, with mentorship). Model a ramp, not a step function. A conservative model that lands beats an aggressive one that gets torn apart in procurement.

The ROI frame, as a chain to payback

Interactive diagram. Tab through its regions; each focused region shows its detail in the panel below.

diagram: roi-frame-and-payback

The value chain collapses to one number a CFO can check: the payback period. Adoption is the honesty dial - discount it hard so the number survives procurement.