Automation ROI Calculator: Is It Actually Worth the Investment?

The simple math that tells you whether automation makes sense for your business (spoiler: it usually does).

You know automation could help. But is it worth it?

Is it worth the time to set up?

Is it worth the money to invest?

Will it actually pay off, or is it just another shiny tool?

Have you hesitated to invest in automation because you're not sure it's worth it?

Do you struggle to calculate the actual value of time saved?

Are you worried about investing in something that won't deliver results?

Have you been burned by tech investments before?

These are legitimate concerns. Let's address them with actual math.

The Simple Automation ROI Formula

Here's the formula I use with every client:

ROI = (Hours Saved × Hourly Value × 52 weeks) - Total Investment Cost

That's it. Let's break it down with real numbers.

Ex Real Example: Lead Follow-Up Automation

The Task: Manually sending follow-up emails to new leads

Time Spent: 5 hours per week

Your Hourly Value: $50/hour (what you could bill or earn with that time)

Automation Setup Cost: $1,500 one-time + $50/month tools

Calculation Amount
Annual time value saved (5 hrs × $50 × 52 weeks) $13,000
Annual tool cost ($50 × 12 months) $600
Setup investment $1,500
Year 1 Net ROI $10,900 profit
Year 2+ Net ROI $12,400/year
ROI: 627% in Year 1

But What's Your Time Actually Worth?

This is where people get stuck. "I'm not billing that time anyway."

Wrong. Here's how to think about it:

If you're a service provider

Use your hourly rate. Time saved = time you can bill to clients.

If you're a business owner

Calculate: What's the value of strategic work you COULD be doing?

If you have employees doing it

Use their fully loaded cost (salary + benefits + overhead ÷ hours worked).

The hidden value

Stress reduction, faster response times, happier clients—harder to quantify but very real.

Quick ROI Check: Your Numbers

Grab a pen. Let's do this for ONE task you're considering automating:

Hours spent per week on this task

Be honest. Include context-switching time.

Multiply by your hourly value

What's your time worth? $30? $75? $150?

Multiply by 52 weeks

This is your annual cost of NOT automating.

Compare to automation cost

If annual time cost > automation investment, you have positive ROI.

The result: If automating 3 hours/week at $50/hour costs $2,000 to set up...

You break even in less than 4 months.

Everything after that is pure profit.

When Automation Doesn't Make Sense

I'll be honest: automation isn't always the answer.

Skip automation if:

The task takes less than 30 minutes per week

The process changes constantly (unstable workflows)

Human judgment is genuinely required every time

The task happens once a year (not enough volume)

For everything else? The math usually works.

Want Help Calculating Your Automation ROI?

I'll analyze your current workflows and show you exactly where automation delivers the biggest returns.

No guesswork. Just numbers.

Free 20-minute ROI assessment.

Get Your ROI Assessment

You'll leave with a clear picture of your automation opportunities.

JP
Jeffrey Pendon

Technical VA & Automation Expert. Founder of Autom8Today.

Related Articles