AI automation ROI calculator
Enter the hours an automation saves each week, the loaded hourly cost of that time, what it costs to build, and what it costs to run; get weekly value, payback period, and first-year ROI.
Pays back in 10.7 weeks · 282% first-year ROI.
- Weekly value
- 360.00
- Build cost
- 3,600.00
- Payback
- 10.7 wk
- First-year ROI
- 282%
Time saved only becomes ROI if it is redeployed to valuable work. Use measured post-launch hours, not pitch-deck estimates.
How it works
Weekly value is hours saved per week multiplied by the loaded hourly cost of the person whose time is freed — loaded meaning salary plus benefits and overhead, not the base wage. Using the base wage is the most common way these estimates flatter themselves, and it understates value for expensive people as often as it overstates it for cheap tasks.
Build cost is build hours times the build rate, whether that rate is a contractor invoice or the internal cost of your own time. Payback weeks is build cost divided by weekly value minus weekly run cost — the run cost matters because an automation with API fees and maintenance never pays back at the naive rate.
First-year ROI is fifty-two weeks of value, minus build cost, minus fifty-two weeks of run cost, all divided by build cost plus fifty-two weeks of run cost. A positive number means the automation returns more than it consumes in year one; the payback figure tells you how long you are underwater before that.
Assumptions and limitations
- Hours saved is the number everyone overestimates. Automations rarely eliminate a task cleanly — they shrink it and add a review step — so measure the task honestly before and after rather than trusting the pre-build guess.
- Time saved only becomes money if it is redeployed to valuable work. Freeing three hours a week that dissolve into slack produces real ROI of zero, whatever this calculator says.
- Run cost drifts: API pricing changes, edge cases accumulate, and someone has to maintain the thing. A fixed weekly run cost is a simplification — revisit it quarterly.
- The model ignores risk and rework. If the automation breaks a process or produces errors someone must catch, those costs are real and not captured here.
Frequently asked questions
How do I calculate ROI on an AI automation?
Take the yearly value (weekly hours saved times loaded hourly cost times 52), subtract what you spent building it and a year of running it, then divide by the total of build cost plus a year of run cost. This calculator does exactly that, plus a payback-weeks figure so you know how long until the build cost is recovered.
What is a loaded hourly cost and why use it instead of salary?
Loaded cost is what an hour of someone's time actually costs the organization — salary plus benefits, taxes, tooling, and overhead — typically well above the bare hourly wage. Using the unloaded wage systematically undervalues time savings, which skews build-versus-skip decisions toward skipping automations that would actually pay.
What is a good payback period for an automation project?
There is no universal threshold — it depends on how long the process being automated will exist and how confident you are in the hours-saved estimate. A useful discipline: if the payback period is longer than your confidence horizon for the process staying stable, the estimate is telling you to build something smaller first.
Why is my automation not paying off even though it saves time?
Usually one of three reasons: the hours-saved estimate was optimistic, the run cost (API fees, maintenance, error-handling) eats the margin, or the freed time is not being redeployed to anything valuable. Rerun the numbers with measured post-launch figures instead of the pitch-deck estimates — the calculator is only as honest as its inputs.
Do the salary and cost figures I enter get stored anywhere?
No. All calculations happen client-side in your browser. Rates, hours, and costs — often sensitive numbers — are never transmitted to a server or stored after you leave the page.
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