Annual labour value
Monthly hours × 12 × the actual hourly value of each role involved.
Automation ROI guide
Calculate what repetitive work is really costing.
A practical automation ROI model for converting recurring time, role value, errors, delays, and implementation costs into a defensible business decision.
The operational problem
Cheap tasks become expensive when they repeat forever—or involve the owner.
Start with annual hours: time per occurrence multiplied by frequency. Then value each hour using the actual role performing it. Forty hours of owner time should not be valued like forty hours of entry-level administration.
Add avoidable errors, rework, delay, software duplication, and lost capacity where they can be supported. Subtract expected implementation cost, software usage, maintenance, training, and the portion of the process that still requires people.
A simple payback calculation is implementation cost divided by monthly net benefit. Use conservative assumptions and test the result after launch.
What improves
Less manual work. Better information. More capacity.
Net monthly benefit
Expected recurring value minus software, support, and remaining manual work.
Payback period
Implementation cost divided by net monthly benefit, adjusted for rollout and risk.
Common opportunities
Where better systems can help.
Every engagement begins with the real workflow—not a predetermined software product.
- Separate owner, manager, and employee hours
- Use conservative recoverable-time estimates
- Include employer costs when known
- Account for recurring software and support
- Value error reduction only with evidence
- Include faster invoicing or capacity carefully
- Model a lower-than-expected scenario
- Measure actual results after launch
Our approach
Measure before building.
Count
Record time per occurrence, frequency, and every role involved.
Value
Apply actual hourly values and defensible operational costs.
Compare
Subtract implementation, ongoing cost, risk, and remaining handling.
Verify
Measure the new process and update the business case with actual results.
Questions
Common questions.
Should employer payroll costs be included?
Yes, when available. Wages alone understate employment cost. Keep the assumptions visible and separate from the base calculation.
Can recovered time be counted as cash savings?
Only if spending is actually avoided. Otherwise describe it as labour value or capacity returned, which is still valuable but economically different from a cash reduction.
What is a good automation payback period?
It depends on risk and durability. A focused workflow with a clear payback inside a year is often easier to justify than a large speculative transformation.
Start with the work you already do