Automation
8 min read
ROI Calculator: Automation vs. Manual Processes
Most manual processes cost more than you think. Here's how to calculate the true ROI of automation.
Table of Contents
ROI Calculation Framework
Here's the formula we use to calculate automation ROI:
ROI Formula
Annual Cost of Manual Process =
(Time per task × Tasks per week × 52 weeks × Hourly rate) + Error cost + Opportunity cost
(Time per task × Tasks per week × 52 weeks × Hourly rate) + Error cost + Opportunity cost
Automation Cost =
Setup cost + (Monthly maintenance × 12)
Setup cost + (Monthly maintenance × 12)
Annual Savings =
Annual cost of manual - Automation cost
Annual cost of manual - Automation cost
ROI % =
(Annual Savings / Automation Cost) × 100
(Annual Savings / Automation Cost) × 100
Real Examples with Numbers
Example 1: Lead Routing Automation
Manual Process: Sales ops manually assigns 100 leads/week
Time per lead: 5 minutes (lookup territory, check rep capacity, assign)
Weekly time: 500 minutes (8.3 hours)
Hourly rate: $50
Annual cost: 8.3 hrs × 52 weeks × $50 = $21,580
Automation Cost:
• Setup: $2,500
• Monthly maintenance: $300
• Annual total: $2,500 + ($300 × 12) = $6,100
ROI: 254%
Annual savings: $15,480
Payback period: 3.4 months
Example 2: Data Enrichment Automation
Manual Process: SDR team manually enriches 200 leads/week
Time per lead: 10 minutes (lookup email, company data, job title)
Weekly time: 2,000 minutes (33.3 hours across 3 SDRs)
Hourly rate: $35
Annual cost: 33.3 hrs × 52 weeks × $35 = $60,606
Automation Cost:
• Clay waterfall setup: $3,200
• Monthly maintenance: $400
• Annual total: $3,200 + ($400 × 12) = $8,000
ROI: 658%
Annual savings: $52,606
Payback period: 1.5 months
Example 3: Customer Handoff Automation
Manual Process: AEs manually hand off 20 new customers/month to CS
Time per handoff: 45 minutes (email context, schedule kickoff, update CS tool)
Monthly time: 15 hours
Hourly rate: $75 (AE time) + $50 (CS time) = $125/handoff
Annual cost: 20 handoffs × 12 months × (45 min / 60) × $125 = $22,500
Automation Cost:
• Setup: $2,800
• Monthly maintenance: $350
• Annual total: $2,800 + ($350 × 12) = $7,000
ROI: 221%
Annual savings: $15,500
Payback period: 3.7 months
Typical Payback Periods
Based on 50+ automation projects we've delivered:
1-3 mo
High-Volume Tasks
Lead routing, data entry, enrichment
3-6 mo
Process Workflows
Handoffs, approvals, notifications
6-12 mo
Complex Integrations
Data pipelines, BI dashboards
Benefits Beyond ROI
Pure financial ROI doesn't capture the full value of automation:
- →Consistency: Automated processes execute the same way every time
- →Speed: Instant execution vs. waiting for humans
- →Scalability: Handle 10x volume without 10x team size
- →Employee Satisfaction: Teams focus on strategic work, not busywork
- →Competitive Advantage: Move faster than competitors still doing manual work
Calculate Your ROI
Want help calculating the ROI for your specific use case? Book a call and we'll run the numbers together.
Book ROI Consultation