Robotics & Automation worked example

Automation Payback with total automation project investment of 800,000 $: a worked example

Push total automation project investment up to 800,000 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it for AFE and steering committee reviews so a pessimistic and optimistic payback case can bracket the answer before approval.

The inputs for this scenario

  • Total automation project investment: 800,000 $ (raised for this scenario; the documented default is 320,000)
  • Annual labor and throughput savings: 110,000 $ / yr (unchanged)
  • Annual support, spares and ownership cost: 15,000 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual savings = annual automation savings - annual support and ownership cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 8.42 yr for automation payback period, the number this scenario is built around.
  • At this operating point the engine returns 95,000 $ / yr for net annual savings.
  • At this operating point the engine returns 800,000 $ for total project investment.
  • At this operating point the engine returns -325,000 $ for five-year net value at this payback.

How this compares with the baseline

  • Against the tool's baseline example, where total automation project investment sits at 320,000 $ and the headline result is 3.37 yr, this scenario comes in 150% above the baseline at 8.42 yr.
  • It divides total project investment by net annual savings (gross savings minus annual support and ownership 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 period: 8.42 yr (headline result)
  • Net annual savings: 95,000 $ / yr
  • Total project investment: 800,000 $
  • Five-year net value at this payback: -325,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.