Robotics & Automation worked example

Automation Labor Savings at 92% labor savings capture rate: a worked example

What does the result look like when labor savings capture rate reaches 92%? The full calculation is worked below with real intermediate numbers. Use it for ROI and payback decks so the labor savings line is built from operator hours displaced, fully burdened rate, and a realistic capture rate, not a wish.

The inputs for this scenario

  • Operator hours displaced per year: 3,500 hr / yr (unchanged)
  • Fully burdened labor rate: 45 $ / hr (unchanged)
  • Labor savings capture rate: 92 % (raised for this scenario; the documented default is 80)
  • Annual redeployment or new-role cost: 5,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Captured labor savings = operator hours displaced per year x fully burdened labor rate x labor savings capture rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 149,900 $ / yr for net annual labor savings, the number this scenario is built around.
  • At this operating point the engine returns 42.83 $ / piece for labor savings per operator hour displaced.
  • At this operating point the engine returns 144,900 $ for captured labor savings.
  • At this operating point the engine returns 5,000 $ for annual redeployment or new-role cost.

How this compares with the baseline

  • Against the tool's baseline example, where labor savings capture rate sits at 80% and the headline result is 131,000 $ / yr, this scenario comes in 14.43% above the baseline at 149,900 $ / yr.
  • A figure at this level is achievable when labor savings capture rate is genuinely sustained, not just peaked for a shift. It captures direct labor only; it ignores automation maintenance, energy, downtime, and quality effects, so pair it with those costs before declaring a net-net project return.

Results at a glance

  • Net annual labor savings: 149,900 $ / yr (headline result)
  • Labor savings per operator hour displaced: 42.83 $ / piece
  • Captured labor savings: 144,900 $
  • Annual redeployment or new-role cost: 5,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.