Should simple ROI use gross or net annual benefit?

Use the net stream: labor, scrap and throughput gains minus the annual support, spares and energy the project adds. Gross benefit flatters the ratio, and every project carries recurring cost.

Why does the payback row divide the same benefit?

Payback is a second, blunter test on the same net stream: it counts the years of benefit needed to equal the investment. At the defaults, 320,000 divided by 95,000 is 3.37 years.

Is simple ROI the same as IRR?

No. IRR solves for the discount rate that makes net present value zero, so it needs the cash flow timing. Simple ROI divides two annual figures, so use it to screen and IRR or NPV to decide.

What happens when the hurdle rate is zero?

Any positive net benefit clears, and the gap row equals the simple ROI itself. Finance normally sets a positive floor to cover the cost of capital, so treat zero as a deliberate override.

Robotics & Automation calculator

Automation ROI Calculator

Screen a robot project by its simple return: net annual benefit divided by net project investment. The gap row checks that return against the capital hurdle rate you enter, and the payback row gives years to recover the spend.

What this calculator does

Simple return on a robot project against the capital hurdle rate you enter, with the payback years.

Formula used

Simple ROI = net annual benefit ÷ net project investment × 100
Gap versus hurdle rate = simple ROI − capital hurdle rate
Simple payback = net project investment ÷ net annual benefit (blank when benefit is zero)

Inputs explained

Net Annual Benefit: Labor, scrap, throughput and energy gains less annual support cost.
Net Project Investment: Robot, EOAT, integration, safety and install cost less credits.
Capital Hurdle Rate: Return finance requires before the project is funded.

How to use the result

Best suited to screening a robot cell capital request, ranking automation projects against a hurdle.
Simple ROI ignores cash flow timing, taxes and project life; use discounted cash flow for the full case.

Current U.S. benchmarks

As of 2026-10-02, the U.S. prime lending rate is 7.00% (Federal Reserve via FRED). Equipment loans and lines of credit typically price at prime plus a spread, so use your actual borrowing rate when you have it.
Global copper trades at $13,543 per tonne (IMF via FRED, Jul 2026), up 38.6% in a year, and U.S. industrial electricity averages 9.77 cents per kWh. Both feed electrified-hardware unit economics.

Common questions

Should simple ROI use gross or net annual benefit? Use the net stream: labor, scrap and throughput gains minus the annual support, spares and energy the project adds. Gross benefit flatters the ratio, and every project carries recurring cost.
Why does the payback row divide the same benefit? Payback is a second, blunter test on the same net stream: it counts the years of benefit needed to equal the investment. At the defaults, 320,000 divided by 95,000 is 3.37 years.
Is simple ROI the same as IRR? No. IRR solves for the discount rate that makes net present value zero, so it needs the cash flow timing. Simple ROI divides two annual figures, so use it to screen and IRR or NPV to decide.
What happens when the hurdle rate is zero? Any positive net benefit clears, and the gap row equals the simple ROI itself. Finance normally sets a positive floor to cover the cost of capital, so treat zero as a deliberate override.

Last reviewed 2026-10-05.