Power Electronics, Motors & Drives worked example

Power Electronics Automation Payback with automation cell capital investment of 62,500 $: a worked example

Push automation cell capital investment up to 62,500 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when screening automation for dispensing, screwdriving, winding, soldering, inspection, test handling, burn-in loading, or material movement.

The inputs for this scenario

  • Automation cell capital investment: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual labor and scrap savings from automation: 18,000 $ / yr (unchanged)
  • Annual robot maintenance and programming cost: 2,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual automation savings = annual automation savings - annual automation support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.03 yr for power electronics automation payback period, the number this scenario is built around.
  • At this operating point the engine returns 15,500 $ / yr for net annual automation savings.
  • At this operating point the engine returns 62,500 $ for automation investment.
  • At this operating point the engine returns 15,000 $ for five-year automation net value.

How this compares with the baseline

  • Against the tool's baseline example, where automation cell capital investment sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • It computes the simple payback period in years by dividing the automation investment by the net annual savings after subtracting ongoing support cost. 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

  • Power electronics automation payback period: 4.03 yr (headline result)
  • Net annual automation savings: 15,500 $ / yr
  • Automation investment: 62,500 $
  • Five-year automation net value: 15,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.