Automation ROI
Model payback periods for robotic cells vs. manual labor.
Payback Period
Years No Payback
The Math
A basic ROI calculation looks at the total capital expenditure (CapEx) against the net operating savings per year.
Labor Savings = (Hourly Rate × Hours Saved/Day) × Working Days
Net Savings = Labor Savings - Annual Maintenance
Payback (Years) = Total CapEx / Net Savings
Net Savings = Labor Savings - Annual Maintenance
Payback (Years) = Total CapEx / Net Savings
Example Calculation
Assume a robotic cell costs $150,000. It replaces two shifts of labor (16 hours total/day). The burdened operator rate is $25/hr. The plant runs 250 days a year.
Annual Labor Savings = ($25 × 16) × 250 = $100,000.
Subtracting $5,000 for annual maintenance leaves $95,000 in net savings.
$150,000 / $95,000 = 1.58 Years payback period.