ROI of business process automation - How to calculate real savings in Your company?

Business process automation is not just a technological trend, but above all a strategic investment. To make informed decisions, precise calculation of return on investment (ROI) is crucial.

Time savings

• Time saved per employee/day
• Labor cost per hour × saved hours = direct savings
• Example: 2h/day × $12/h × 20 working days = $480/month

Error reduction

• Cost of single error × number of eliminated errors
• Include costs of corrections, complaints and lost time

Increased productivity

• Productivity increase in % × value produced by team
• Ability to serve more customers without additional hiring

ROI calculation formula

ROI = [(benefits - investment costs) / investment costs] × 100%

Investment costs include:

• Software purchase/licenses
• Implementation and training
• Maintenance costs (first year)

Financial benefits:

• Labor cost savings
• Error cost reduction
• Increased revenue from higher productivity

Practical calculation example

Accounting firm automating invoices:

• Implementation cost: $12,000
• Time saved: 15h/week
• Labor cost per hour: $15
• Annual savings: 15h × $15 × 50 weeks = $11,250
• ROI after one year: -6%
• ROI after two years: 94%

Metrics to monitor

• Payback period
• Average process handling time before/after automation
• Error rate per 1000 operations
• Team productivity (tasks/month)

Additional benefits difficult to quantify

Also consider:

• Improved employee satisfaction
• Better customer service quality
• Business scaling opportunities
• Competitive market advantage

Key takeaway: Automation ROI often exceeds 200-300% within 2-3 years, but requires realistic cost analysis and systematic results monitoring.

Need help calculating Your company's ROI? The experts at AutomationNex.io will help you conduct a detailed process analysis and prepare a precise savings calculation. Contact us for a free consultation and a personalized ROI calculator tailored to your business's specific needs.