ROI Calculator

Automated test fixtures + software payback

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Live ROI + Capacity Impact

Compare cost savings (conservative baseline) with the additional production capacity unlocked when automation frees up direct labor time.

Inputs

ROI (labor savings)
How many units you build per year.
Fully burdened shop floor labor rate.
One-time cost for automation + fixtures.
Current manual test time per unit.
Expected automated time per unit.
CAPACITY MODEL INPUTS (optional)
Number of direct labor employees (production/test).
Typically 240–260 days (after holidays).
Typically 8 hours/day.
Revenue primarily driven by direct labor output.
Value per direct-labor minute
Revenue-derived value per minute per direct employee (from annual revenue ÷ available direct-labor minutes).

Key outputs

Annual Cost Savings
$—
Labor savings only (conservative baseline)
Labor-Only Payback
—
Including capacity impact: —
Labor Reduction
—
—
Time Recovered / Year
—
—
Additional Production Capacity
Additional Capacity Value / Year
$—
Revenue capacity unlocked from freed direct labor time
Total Annual Impact
$—
Includes cost savings + additional capacity

Total impact includes both cost savings and the value of increased production capacity using your existing workforce.

Payback vs annual volume

Cost Savings (Labor Only)
Total Impact (Including Capacity Gain)
Your Current Volume

↓ Lower = faster payback. Curves drop as volume increases and the fixed fixture cost is spread across more units.

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Understanding Capacity & Capacity Value

Automation doesn’t just reduce cost—it increases what your team can produce.

Every minute of direct labor represents revenue.

Most manufacturing teams evaluate improvements based on labor cost savings—but this does not capture the full impact of automation.

When test time is reduced, recovered minutes can be redirected toward additional production, engineering work, or throughput—without increasing headcount.

Efficiency improvements extend beyond cost reduction:

The ROI tool models this using capacity value—an estimate of how much additional revenue capacity is unlocked by freeing direct labor time.

In most production settings, the primary benefit is the ability to do more with the same team.

Labor-only ROI is the conservative baseline. Capacity value reflects the full operational impact.

Assumptions & framing

  • Labor-only ROI uses burdened labor rate × minutes saved × annual volume as the conservative baseline.
  • Capacity value estimates the additional production capacity unlocked by freeing direct labor time.
  • Key formulas (as calculated):
    timeSavedMin = manualMin − autoMin
    laborRateMin = laborRateHr ÷ 60
    annualLaborSavings = annualVolume × timeSavedMin × laborRateMin
    valuePerMin = annualRevenue ÷ (directEmployees × daysPerYear × hoursPerDay × 60)
    capacityValue = annualVolume × timeSavedMin × valuePerMin
    hoursSavedPerYear = (annualVolume × timeSavedMin) ÷ 60
  • Total impact combines annual cost savings with additional capacity value.
  • If you prefer a more conservative capacity estimate, reduce the annual revenue input or the direct labor employee count.
  • All results are first-order estimates intended for live customer discussions and early business case evaluation.