Automation ROI Calculator
How many years a robot cell or automatic machine takes to pay back from the labour and other savings it brings, with and without the discount rate, its net present value and its return over its life.
Results
What this tool does
The same cell is worth twice as much on two shifts as on one, because it replaces an operator on each, so the number of shifts usually decides the case more than the price does. Use the full yearly cost of an operator, with social charges, holidays and absences, not the gross salary: in most of Europe it is 30 to 40 % higher. Count the savings that are easy to forget, such as less scrap and more steady output, but also the costs that keep coming: maintenance, spares, energy and the programmer's time. Simple payback ignores what the money would have earned elsewhere; at 8 % a year a 2.4-year payback becomes about 2.7 years once discounted.
Formula
saving = operators × shifts × cost per operator + other savings − running cost · payback = investment ÷ saving · NPV = saving × (1 − (1 + i)⁻ⁿ) ÷ i − investment
Variables
| Symbol | Meaning | Unit |
|---|---|---|
iv | Total investment (equipment, integration, start-up) | — |
op | Operators freed per shift | — |
sh | Shifts per day | — |
lc | Yearly cost of one operator, charges included | — |
os | Other savings per year (scrap, quality, extra output) | — |
mc | Running cost of the cell per year (maintenance, energy, spares) | — |
yl | Useful life | years |
dr | Discount rate | % |
PB | Payback period | years |
SN | Saved per year | — |
DP | Payback once the discount rate is counted | years |
NV | Net present value | — |
RO | Return over the useful life | % |
VD | Over its useful life | — |
Worked example
- Total investment (equipment, integration, start-up)150,000
- Operators freed per shift1
- Shifts per day2
- Yearly cost of one operator, charges included30,000
- Other savings per year (scrap, quality, extra output)8000
- Running cost of the cell per year (maintenance, energy, spares)5000
- Useful life8 years
- Discount rate8 %
- Payback period2.38 years
- Saved per year63,000
- Payback once the discount rate is counted2.75 years
- Net present value212,038
- Return over the useful life236.0 %
- Over its useful lifeIt pays for itself and more
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.