Automation ROI Calculator

Automation ROI is calculated by comparing what you currently spend (labour + error cost) against what you will save (recovered time + fewer errors) minus the ongoing technology cost. This calculator models the most common case: a manual, repeatable process done by multiple staff members, where errors generate rework, refunds, or remediation costs.

How to set your hourly cost

The "hourly cost" figure should include salary, employer NI/pension, benefits, and overhead (desk, equipment, management time). A simple rule of thumb: take annual salary, multiply by 1.3 for total employment cost, then divide by 1,760 (annual working hours). A £35,000/year employee costs approximately £26/hour in salary alone — about £34/hour with overhead. Use £30–£45/hour for most office roles, £50–£80/hour for specialist technical staff.

The 90% labour saving assumption

This calculator assumes 90% of the time currently spent on the process is recoverable. It does not assume 100% because automated systems still require monitoring, exception handling, and occasional manual intervention. For highly structured, rules-based processes (data entry, report generation, invoice matching) 90–95% recovery is realistic. For processes with frequent exceptions, model 60–75%.

Beyond direct savings, automation typically improves quality (consistent output, no fatigue errors), speed (hours or days reduced to seconds or minutes), and staff morale (repetitive data-entry work is a common attrition driver). These benefits do not appear in this model but should be included in a full business case.