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Automation ROI calculator

To find what a manual process costs, multiply the hours a week spent on it by the number of people doing it, by their hourly cost, by the working weeks in your year. Include the time spent correcting mistakes — for most repetitive processes that correction time is a third of the total and is the part automation removes most reliably.

Before automating anything, it helps to know what the process costs you today. Enter your numbers below — the calculation happens in your browser and nothing is sent anywhere.

Your numbers

Per person, on the process itself.
Re-keying errors, chasing what went missing. Usually underestimated.
Not salary alone — add contributions, equipment, management time.

What it costs today

₹4.61 lakh

a year, in staff time on this one process

Of that time, spent fixing mistakes25%

The part nobody puts in a job description, and the part automation removes most reliably.

Hours a week, whole team
24
Hours a year
1,152
Working days a year
144
Cost a month
₹38,400

Assumes 48 working weeks a year and an 8-hour day. This is what the process costs now — not a saving. Automation rarely removes all of it, so treat this as the size of the prize rather than the cheque.

Calculated in your browser. Nothing is sent or stored.

How this is calculated

Hours a week, times the people doing it, times their hourly cost, times the working weeks in your year. Time spent fixing mistakes is added, because it is part of the true cost and it is usually invisible in job descriptions.

The result is what the process costs you annually in staff time at today's rates.

Getting the hourly cost right

Use fully loaded cost, not salary. Salary divided by hours understates what an hour actually costs you once you include employer contributions, equipment, workspace and management time. A common rule of thumb is somewhere between 1.25 and 1.4 times base salary, but use your own figure if you have one.

If you are unsure, running the calculation twice — once at salary rate and once at 1.3 times — gives you the range, and the range is usually enough to make the decision.

Why the correction time matters

Most estimates of a manual process count the time to do it and ignore the time to fix it. Re-keying data between systems produces errors at a rate that surprises people, and each one costs more to find and correct than it did to create.

That correction work is also the part automation removes most reliably. A system that moves a record between two places does not mistype it on a Friday afternoon.

What this number is not

It is not your saving. Automating a process rarely removes 100% of the time it takes — there are exceptions to handle, approvals to give, and the system itself needs occasional attention. A realistic expectation for a well-chosen process is that most of the routine time goes and some supervision remains.

It is also not the whole benefit. The measurable second-order effects are usually consistency, speed and visibility: the work happens at the same pace regardless of who is in the office, and because a system that runs a process also records it, you can finally measure it.

How to read the result

Compare the annual figure against what building the system would cost. If the process costs several times a build in a single year, the case is straightforward. If it is close, the deciding factor is usually not money — it is whether the process is stable enough to be worth encoding, which is a question about your business rather than about software.

Questions

Does automation remove all of this cost?
No, and any vendor saying it does is overselling. A well-chosen process usually loses most of its routine time while keeping some supervision and exception handling. Treat the figure as the size of the prize, not the cheque.
What hourly cost should I use?
Fully loaded cost rather than salary — salary alone understates what an hour costs once contributions, equipment and management time are included. Many businesses use roughly 1.25 to 1.4 times base salary.
Is my data stored?
No. Everything is calculated in your browser. Nothing is sent to a server and nothing is recorded.
What if several people spend different amounts of time on it?
Use the average per person and the headcount. If one person carries most of it, run the calculation for that person alone first — the figure is often large enough on its own to answer the question.

Related

Now you have the number, the useful question is what to do about it. That is one call.

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