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Automation ROI Calculator

Translate a proposed automation into time saved, gross benefit, total cost, ROI and payback while keeping assumptions visible.

Enter your assumptions

Use one period and currency consistently. Change any value to recalculate.

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Results

Estimate based on the assumptions shown.

Instant estimate

What this calculator measures

Automation ROI compares the measurable labor and error cost avoided with implementation and recurring software cost. The key input is not the theoretical percentage a vendor promises, but the baseline time measured for one stable workflow and the portion that a controlled pilot actually removes.

Saved hours only become economic value when the time is redeployed, capacity constraints are relieved or paid work is avoided. The calculator therefore reports hours and monetary value separately rather than treating every saved minute as immediate cash.

How to use the Automation ROI Calculator

  1. Measure current monthly workflow hours and enter a tested percentage saved.
  2. Enter loaded hourly cost, implementation cost, software cost and error savings.
  3. Review hours saved, monthly benefit, net benefit, ROI and payback period.
Automation ROI = (total benefit − total cost) ÷ total cost × 100

Monthly benefit combines modeled labor capacity value and entered error-cost savings. Total cost combines implementation and recurring software cost across the period.

Worked example

A workflow using 200 hours a month with 40% verified time savings frees 80 hours. At $50 an hour, that models $4,000 monthly labor-capacity value before error savings and tool costs.

Assumptions and limitations

  • Time saved is not automatically cash saved or additional revenue.
  • Use pilot evidence rather than vendor percentages for the savings input.
  • Review, exception handling, maintenance and failure recovery should remain in the baseline.
  • The model assumes benefits and recurring costs remain stable across the selected period.

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