Robotics & Automation worked example
Automation ROI at 14% capital hurdle rate: a worked example
This worked example runs the automation roi numbers for a tougher week than the baseline: 14% capital hurdle rate instead of the typical 20%. Estimate annual ROI on a robotic workcell as annual net benefit over net project investment, against a hurdle rate.
The inputs for this scenario
- Net annual benefit: 95,000 $ / yr (held at the documented default)
- Net project investment: 320,000 $ (held at the documented default)
- Capital hurdle rate: 14 % (the input this scenario stresses; the baseline uses 20)
Working through the calculation
- The calculation starts from the formula this tool documents: Automation ROI = net annual benefit / net project investment.
- Automation ROI works out to -1,607,143 % ROI at these inputs, and this is the headline figure for the scenario.
- Annual ROI gap vs hurdle works out to -225,000 value at these inputs.
- Net annual benefit works out to 95,000 value at these inputs.
- Net project investment works out to 320,000 value at these inputs.
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 42.86% below the baseline at -1,607,143 % ROI.
- Use it to screen and rank robotics or workcell projects against your hurdle rate before committing to a detailed capital request. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.
Results at a glance
- Automation ROI: -1,607,143 % 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
- To rerun this with your own numbers, open the live Automation ROI calculator, set capital hurdle rate to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.