How to Calculate Automation ROI

The arithmetic is simple enough to fit on one line: annual benefit equals runs per year multiplied by minutes saved per run, converted to hours and multiplied by the fully loaded hourly cost, plus the value of errors avoided and delay removed. Return equals that benefit divided by the build cost plus a year of running cost. Everything difficult sits in the honesty of the inputs. Three mistakes make the case collapse under scrutiny. The first is counting time saved as cash saved when nobody's hours actually change — if the saved time is real, name what the team does with it, or name the headcount you avoid hiring. The second is ignoring the residual: almost no automation reaches 100%, and exceptions still take human time, so model 80–90% and let the result beat expectations. The third is omitting maintenance, which turns a two-year case into a one-year one. A credible model also carries a measured baseline: the same numbers, counted before the build, from logs rather than from memory.