Robotics & Automation worked example

Automation Labor Savings at 58% labor savings capture rate: a worked example

Suppose labor savings capture rate falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate annual labor savings from automating a station using operator hours displaced, fully burdened labor rate, capture rate, and any redeployment cost.

The inputs for this scenario

  • Operator hours displaced per year: 3,500 hr / yr (held at the documented default)
  • Fully burdened labor rate: 45 $ / hr (held at the documented default)
  • Labor savings capture rate: 58 % (the input this scenario stresses; the baseline uses 80)
  • Annual redeployment or new-role cost: 5,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Captured labor savings = operator hours displaced per year x fully burdened labor rate x labor savings capture rate.
  • Net annual labor savings works out to 96,350 $ / yr at these inputs, and this is the headline figure for the scenario.
  • Labor savings per operator hour displaced works out to 27.53 $ / piece at these inputs.
  • Captured labor savings works out to 91,350 $ at these inputs.
  • Annual redeployment or new-role cost works out to 5,000 $ at these inputs.

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 26.45% below the baseline at 96,350 $ / yr.
  • It multiplies operator hours displaced by the fully burdened labor rate and a capture rate to get realized savings, then subtracts the cost of redeploying or backfilling those workers. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Net annual labor savings: 96,350 $ / yr (headline result)
  • Labor savings per operator hour displaced: 27.53 $ / piece
  • Captured labor savings: 91,350 $
  • Annual redeployment or new-role cost: 5,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Automation Labor Savings calculator, set labor savings capture rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.