Automation ROI Calculator

How to Use the Automation ROI Calculator: Step by Step

1. Enter Savings from Automation in ₹ or $. Include labour hours saved, error reductions, faster cycle times, and rework avoided. 
2. Enter Cost of Automation in the same currency, including software, equipment, setup, training, and maintenance. 
3. Click Calculate to get Automation ROI (%). 
4. Decide next steps. If ROI is low or negative, refine scope, increase adoption, or renegotiate costs. 

Validation

Use the same currency for both inputs. Values must be 0 or higher. If cost is 0, ROI is undefined. If savings are less than cost, ROI will be negative.

Understanding Your Result

Automation ROI (%) = ((Savings from Automation − Cost of Automation) ÷ Cost of Automation) × 100.
The output shows the return generated relative to the investment. Positive and rising ROI indicates effective design, adoption, and governance. Negative ROI suggests under utilisation, poor process fit, or inflated implementation cost.

Why Automation ROI Matters?

It links engineering effort to financial impact, guiding which workflows to automate next and how aggressively to scale.

When to Use It?

• Building a business case for a pilot or phase two. 
• Comparing RPA, workflow, or AI powered options for the same process. 
• Reviewing vendor proposals and total cost of ownership. 
• Post implementation validation and quarterly benefit tracking. 
• Portfolio planning across departments or plants. 

Industry Benchmarks

Practical Examples

Example 1: Standard case

Savings from Automation = ₹12,00,000
Cost of Automation = ₹4,00,000
Automation ROI = ((12,00,000 − 4,00,000) ÷ 4,00,000) × 100
= (8,00,000 ÷ 4,00,000) × 100
= 200%

Interpretation: Every ₹1 invested returned ₹2 in value within the measurement window.

Example 2: Adoption gap scenario

Savings from Automation = ₹6,00,000
Cost of Automation = ₹4,50,000
Automation ROI = ((6,00,000 − 4,50,000) ÷ 4,50,000) × 100
= (1,50,000 ÷ 4,50,000) × 100
= 33.3%

Interpretation: Modest ROI suggests improving user adoption, expanding coverage, or trimming licence scope.

Growth Tips & Business Impact

• Measure benefits rigorously. Baseline time and errors, then convert to currency with standard rates. (Impacts: credibility, funding)
• Target high volume and rule based work first. Fewer exceptions increase realised savings. (Impacts: ROI, stability)
• Design for adoption. Build in clear triggers, SLAs, and ownership to avoid manual fallbacks. (Impacts: realised savings, reliability)
• Control total cost. Consolidate licences, reuse components, and phase delivery. (Impacts: payback, TCO)
• Scale what works. After validation, extend to adjacent processes and shift talent to higher value work. (Impacts: throughput, margin)