OEE & Factory Performance worked example

Automation Payback Calculator with cell or robot capital cost of 37,500 $: a worked example

This worked example runs the automation payback calculator numbers for a tougher week than the baseline: cell or robot capital cost of 37,500 $ instead of the typical 75,000 $. Estimate automation payback from project cost, labor savings, and support cost.

The inputs for this scenario

  • Cell or robot capital cost: 37,500 $ (the input this scenario stresses; the baseline uses 75,000)
  • Annual labor and scrap savings: 52,000 $ / yr (held at the documented default)
  • Annual maintenance and support cost: 8,000 $ / yr (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Payback = investment รท net annual savings.
  • Automation payback payback period works out to 0.85 yr at these inputs, and this is the headline figure for the scenario.
  • Net annual automation payback savings works out to 44,000 $ / yr at these inputs.
  • Automation payback investment works out to 37,500 $ at these inputs.
  • Five-year net automation payback value works out to 182,500 $ at these inputs.

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 50% below the baseline at 0.85 yr.
  • Use it when scoping a robot, cobot, vision, or material-handling project and you need a fast go/no-go before building a full discounted cash flow model. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Automation payback payback period: 0.85 yr (headline result)
  • Net annual automation payback savings: 44,000 $ / yr
  • Automation payback investment: 37,500 $
  • Five-year net automation payback value: 182,500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Automation Payback Calculator calculator, set cell or robot capital cost to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.