WMS, Warehouse Labor & Fulfillment worked example

Warehouse Automation Payback with automation project investment of 12,500 $: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop automation project investment to 12,500 $, then walk the calculation through step by step. Estimate warehouse automation payback for wms, warehouse labor and fulfillment using production-ready inputs so teams can screen a capital project before a detailed business case.

The inputs for this scenario

  • Automation project investment: 12,500 $ (the input this scenario stresses; the baseline uses 25,000)
  • Annual labor and throughput savings: 18,000 $ / yr (held at the documented default)
  • Annual maintenance and support cost: 2,500 $ / yr (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Net annual warehouse automation payback savings = annual warehouse automation payback savings - annual warehouse automation payback support cost.
  • Warehouse automation payback payback period works out to 0.81 yr at these inputs, and this is the headline figure for the scenario.
  • Net annual warehouse automation payback savings works out to 15,500 $ / yr at these inputs.
  • Warehouse automation payback investment works out to 12,500 $ at these inputs.
  • Five-year net warehouse automation payback value works out to 65,000 $ at these inputs.

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 50% below the baseline at 0.81 yr.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to automation project investment, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. Simple payback ignores the time value of money and any savings beyond the payback point, and it assumes annual savings and support costs stay flat over the horizon.

Results at a glance

  • Warehouse automation payback payback period: 0.81 yr (headline result)
  • Net annual warehouse automation payback savings: 15,500 $ / yr
  • Warehouse automation payback investment: 12,500 $
  • Five-year net warehouse automation payback value: 65,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Warehouse Automation Payback calculator, set automation project investment to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.