What ROI means in automation
ROI (return on investment) tells you whether an automation is worth it by comparing savings (time and errors) against implementation and ongoing costs.
Inputs you need
- Monthly frequency
- Manual time per execution
- Hourly cost (or estimated team cost)
- Tool cost (monthly/annual)
- Build and maintenance time
Practical formulas
Monthly savings = (monthly frequency × minutes saved) ÷ 60 × hourly cost
ROI = (benefit - cost) ÷ cost
Example
- 50 runs/month
- 10 minutes saved/run
- $25/hour
- Tool cost: $30/month
Savings: (50×10)/60×25 ≈ $208.33. Net benefit ≈ $178.33.
What to include
- Maintenance and failure handling
- Conservative time-saving estimates
FAQ
What's a “good” ROI?
Context matters, but payback within weeks is often a strong signal.