Automation and AI ROI Calculator

Automation ROI = (value of time saved − tool and setup costs) ÷ costs × 100. Value of time saved is hours saved × hourly cost × the share of that time put to use. In the example: 40 hours × $35 × 75% is $1,050 a month at full speed. Over 3 years, after a 2-month ramp, that's $37,275 against $19,000 of cost: 96%.

The same way. Count the hours an AI tool or agent saves on a task, at the full cost of the people who did that work, and compare with the subscription, usage fees and setup time. Include time spent checking AI output, which cuts real savings. Add revenue it brings in, such as faster lead response, as extra hours saved at the value they produce.

Count the hours a bot takes over, such as data entry or invoice matching, at the hourly cost of staff who did it. Add license, build and maintenance costs as monthly and setup costs. RPA often needs more setup and upkeep than off-the-shelf tools, so enter a larger setup cost and a longer time to get up to speed.

Multiply invoices a month by the minutes each takes by hand, convert to hours, and enter that as hours saved. 1,000 invoices at 12 minutes each is 200 hours a month. Add savings from early-payment discounts and fewer late fees as extra hours at the same rate, or subtract them from the tool's cost.

Most automation projects aim to pay back within 6 to 12 months. A tool that pays back in a few months and returns over 100% across 3 years, like the example, is a strong case. Projects with a long payback carry more risk, because tools and processes change.

Use what the work costs you, not just the wage. Add payroll taxes, benefits and overhead, often 20% to 40% on top of pay. A $28 an hour employee often costs $35 or more. For contractors, use what you pay them per hour. For owner time, use what that hour could earn you.

People fill freed time with other things. Unless the time goes to work that earns money, or lets you hire one fewer person, you haven't saved cash. The share you enter for time put to use changes the example's ROI from 31% to 162% across the range.

Simple tools often pay back in 1 to 6 months. Bigger projects with custom setup can take a year or more. The example pays back in month 3. A longer ramp-up, more setup cost or fewer hours saved all push it out. The chart shows the running total and marks the month it turns positive.

Subscription or license fees, setup and integration, training time, and ongoing upkeep such as fixing broken workflows. Count staff time spent on setup at its hourly cost. Include usage-based fees for AI tools at your expected volume.

Compare them side by side. Enter the tool here, then use our employee cost calculator for the hire. If the tool covers most of the work for less than the hire's full cost, automate. You can also automate the repetitive tasks and hire for work that needs judgment.