WMS, Warehouse Labor & Fulfillment worked example

Warehouse Automation Payback with automation project investment of 62,500 $: a worked example

Push automation project investment up to 62,500 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when warehouse automation payback in wms, warehouse labor and fulfillment is being put in front of a capital committee and the savings story needs to hold up.

The inputs for this scenario

  • Automation project investment: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual labor and throughput savings: 18,000 $ / yr (unchanged)
  • Annual maintenance and support cost: 2,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual warehouse automation payback savings = annual warehouse automation payback savings - annual warehouse automation payback support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.03 yr for warehouse automation payback payback period, the number this scenario is built around.
  • At this operating point the engine returns 15,500 $ / yr for net annual warehouse automation payback savings.
  • At this operating point the engine returns 62,500 $ for warehouse automation payback investment.
  • At this operating point the engine returns 15,000 $ for five-year net warehouse automation payback value.

How this compares with the baseline

  • Against the tool's baseline example, where automation project investment sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • It computes net annual savings by subtracting ongoing support cost from gross savings, then divides the investment by that net to get the payback period, and projects five-year net value. 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

  • Warehouse automation payback payback period: 4.03 yr (headline result)
  • Net annual warehouse automation payback savings: 15,500 $ / yr
  • Warehouse automation payback investment: 62,500 $
  • Five-year net warehouse automation payback value: 15,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.