Every automation pitch comes with ROI claims. «300% return.» «Saves 40 hours a week.» These numbers are easy to generate and hard to verify — until you run the same math on your own process.

Here’s how to do that calculation before you spend anything.

Step 1: Calculate the current cost of the process

Pick one specific process. Estimate:

How many times it happens per month (frequency)
How long it takes each time (in minutes)
Who does it — and what’s their loaded hourly cost (salary + benefits + overhead, typically 1.3–1.5x base salary)

Formula: (frequency × minutes per instance / 60) × hourly cost = monthly labor cost

Example: 200 invoices/month × 15 min each / 60 × $35/hour = $1,750/month or $21,000/year.

Step 2: Add the error cost

Manual processes have error rates. Even 1–2% errors on invoicing, data entry, or order processing can cost real money — in corrections, customer complaints, or compliance issues. Estimate conservatively. If you process 200 invoices and 4 have errors, and each correction takes 45 minutes — that’s 3 hours of additional work, plus any downstream cost from the mistake itself.

Step 3: Estimate what automation eliminates

Automation rarely eliminates 100% of the work. A realistic estimate:

80% reduction in labor time (humans still handle exceptions)
Near-zero error rate on the automated portion
No change in frequency — the process runs just as often, just faster

Using our example: $1,750/month × 80% = $1,400/month saved.

Step 4: Factor in implementation cost

A simple one-system automation project typically runs $600–$1,200. A multi-system project with custom logic: $1,800–$4,000. Enterprise-grade projects start at $6,000.

Add ongoing maintenance: usually $100–$300/month depending on complexity and whether you have internal support capacity.

Step 5: Calculate payback period

Formula: Implementation cost / monthly savings = months to break even

Example: $1,800 implementation / $1,400 monthly savings = 1.3 months to break even.

After that, you’re saving $1,400/month — $16,800/year — indefinitely, as long as the process exists.

What most ROI calculations miss

Speed. When a process that took 3 days now takes 20 minutes, your team can handle more volume without hiring. That capacity gain is harder to quantify but often worth more than the direct labor savings.

If you want to run this math on your own process, we offer a free automation audit — we map your process, run the numbers, and tell you whether the economics work before you commit to anything.