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Calcimator

Automation ROI Calculator

Calculate payback period and return on investment from labor savings, throughput gains, and total system cost for automation projects.

Inputs

$
$
$
$
hrs
years

Results

Payback Period

0.5 years

ROI

1,220%

Net Annual Savings$339,400.00
Annual Labor Savings$280,000.00
Total Investment$180,000.00
NPV (8% discount)$1,587,042.00
How to Use This Calculator
  1. Enter total system cost ($) including robot hardware, safety equipment, and peripheral devices.
  2. Set installation and commissioning cost and annual maintenance budget.
  3. Enter the labor cost per hour and number of workers the automation will replace.
  4. Set annual operating hours (typically 4,000–8,000 for single to dual-shift operations).
  5. Review payback period, ROI (%), net annual savings, and total investment to justify the project.

How the result changes with System Cost

System CostPayback PeriodROI
$500,900.001.6 years348%
$1,750,650.005.2 years33%
$3,250,350.009.7 years-28%
$4,500,100.0013.3 years-48%

What each input means

System Cost
Total cost of robot, tooling, controls, and integration.
Installation Cost
Cost for site prep, installation, and commissioning.
Annual Maintenance
Yearly maintenance, spare parts, and support costs.
Labor Cost per Hour
Fully burdened labor rate including benefits.
Workers Replaced
Number of FTE positions the automation replaces.
Operating Hours/Year
Annual operating hours (e.g., 2 shifts = ~4000 hrs).
Throughput Gain
Expected percentage increase in production output.
Scrap Reduction
Expected percentage reduction in scrap/rework.
Project Life
Expected useful life of the automation system.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    System Cost = 150000, Installation Cost = 30000, Annual Maintenance = 5000, Labor Cost per Hour = 35 = 9 input(s) provided
  2. Calculate Payback Period
    Payback Period
    0.5 = 0.5
  3. Calculate ROI
    ROI
    1220 = 1220
  4. Calculate Net Annual Savings
    Net Annual Savings
    339400 = $339,400
  5. Calculate Annual Labor Savings
    Annual Labor Savings
    280000 = $280,000

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