Business & ROI

Automation ROI Calculator

Work out whether an automation is worth building before you build it.

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The work today
$

Salary plus overhead, not salary alone.

%

Realistically. Exceptions always remain.

Errors
%
$

Only errors that actually cost something.

%
Building and running it
h
$
h
$
%/yr
Maintenance is the input people leave out. Anything touching an external system needs attention whenever that system changes. Ten to twenty per cent of the build effort per year is a floor, not a ceiling.

Payback period (including maintenance)

2.1 months

Strong case

Monthly

Hours saved64 h
≈ full-time equivalent0.40 FTE
Labour saving$2,048
Error saving$403
Maintenance−$300
Tooling−$40
Net benefit$2,111

Year one

Build cost$4,500
Net return$22,857
ROI508%

How to use the result#

The number that matters is not annual saving — it is payback period including maintenance. Automations have an ongoing cost that most business cases omit, and that omission is why so many automation programmes look successful on paper and unimpressive in the accounts.

The inputs that people get wrong#

Maintenance hours. The most under-estimated input by a wide margin. A workflow touching an external system needs attention whenever that system changes. Budget 10–20% of the build effort annually as a floor.

Error rate reduction. Only count errors that actually cost something. A typo caught at the next step costs nothing; a wrong payment costs the payment.

Volume growth. An automation processing 100 items a month may not justify itself. At 1,000 it usually does. Model the volume you expect in a year, not today's.

A useful rule of thumb

If the payback period exceeds 18 months on today's volume, the automation is usually not the right next project — unless volume is growing fast, in which case model that explicitly rather than hoping.

Related reading

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Business Automation Audit

A structured review of your operational processes identifying what to automate, in what order, and what it is worth.