operations·5 min read·
ROI of Automation: How to Calculate the Payback
Automation isn't free, and not every workflow deserves automating. Here's the framework we use with clients to pick what's worth it.
The 5-number model
1. Time saved per occurrence (in minutes).
2. Occurrences per month.
3. Hourly cost of the person doing it today.
4. One-time setup cost.
5. Monthly software cost.
Monthly value = (1 × 2 ÷ 60) × 3. Payback = 4 ÷ (monthly value − 5).
Practical thresholds
Under 6-month payback: green-light it.
6–18 months: worth doing if it also reduces errors or improves customer experience.
Over 18 months: only worth it if it unlocks something strategic.
FAQ
Yes, but separately. The numbers above are the floor; quality and CX improvements stack on top.
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