Abstract: A method for determining the net value of an information technology application or portfolio of applications. User value contributions for the application are developed by calculating internal user costs and external costs, following which, breakouts of the organizational IT budget as well as staffing costs and resources are carried out. From the data thus developed, total application value is determined in conjunction with an uplift factor as applied to a base application value. Factors representing unavailability, potential total loss, and inflexibility are derived and subtracted from the total application value along with a subtraction of a total IT budget to achieve a net application value corresponding with the value of the analyzed application.