Robotics & Automation worked example

Automation ROI at 23% capital hurdle rate: a worked example

What does the result look like when capital hurdle rate reaches 23%? The full calculation is worked below with real intermediate numbers. Use it when an automation business case has to clear a capital hurdle and you need ROI percent and ROI dollars on the same page.

The inputs for this scenario

  • Net annual benefit: 95,000 $ / yr (unchanged)
  • Net project investment: 320,000 $ (unchanged)
  • Capital hurdle rate: 23 % (raised for this scenario; the documented default is 20)

Working through the calculation

  • Applying the documented formula (Automation ROI = net annual benefit / net project investment) to the inputs above produces each figure below.
  • At this operating point the engine returns -978,261 % ROI for automation roi, the number this scenario is built around.
  • At this operating point the engine returns -225,000 value for annual roi gap vs hurdle.
  • At this operating point the engine returns 95,000 value for net annual benefit.
  • At this operating point the engine returns 320,000 value for net project investment.

How this compares with the baseline

  • Against the tool's baseline example, where capital hurdle rate sits at 20% and the headline result is -1,125,000 % ROI, this scenario comes in 13.04% above the baseline at -978,261 % ROI.
  • A figure at this level is achievable when capital hurdle rate is genuinely sustained, not just peaked for a shift. It is a single-year simple ROI, not an IRR or NPV, so it ignores ramp-up, project life, and the time value of money; enter both dollar figures consistently, because mixing units or scaling distorts the ratio badly.

Results at a glance

  • Automation ROI: -978,261 % ROI (headline result)
  • Annual ROI gap vs hurdle: -225,000 value
  • Net annual benefit: 95,000 value
  • Net project investment: 320,000 value

Run it with your numbers

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

Last reviewed 2026-05-12.