OEE & Factory Performance worked example

Automation Payback Calculator with cell or robot capital cost of 187,500 $: a worked example

Push cell or robot capital cost up to 187,500 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when automation payback in oee and factory performance is being compared against another oee and factory performance project for the same budget.

The inputs for this scenario

  • Cell or robot capital cost: 187,500 $ (raised for this scenario; the documented default is 75,000)
  • Annual labor and scrap savings: 52,000 $ / yr (unchanged)
  • Annual maintenance and support cost: 8,000 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Payback = investment รท net annual savings) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.26 yr for automation payback payback period, the number this scenario is built around.
  • At this operating point the engine returns 44,000 $ / yr for net annual automation payback savings.
  • At this operating point the engine returns 187,500 $ for automation payback investment.
  • At this operating point the engine returns 32,500 $ for five-year net automation payback value.

How this compares with the baseline

  • Against the tool's baseline example, where cell or robot capital cost sits at 75,000 $ and the headline result is 1.7 yr, this scenario comes in 150% above the baseline at 4.26 yr.
  • It divides the up-front automation investment by the net annual savings (gross savings minus annual support cost) to return the payback period in years. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Automation payback payback period: 4.26 yr (headline result)
  • Net annual automation payback savings: 44,000 $ / yr
  • Automation payback investment: 187,500 $
  • Five-year net automation payback value: 32,500 $

Run it with your numbers

  • Every input above is editable in the live Automation Payback Calculator calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.