Find out if automation makes financial sense for your operation — before you ever talk to an integrator.
Automation ROI Calculator
Find out if automation makes financial sense for your operation.
Labor
Quality
Project
Simple mode: Just enter your basic labor numbers. We'll handle the rest with industry-standard estimates.
Labor Costs
Hourly wage per operator
$
Number of operators on this task
Shifts per day
Working days per year
Benefits burden rate
?
Benefits Burden Rate
This is the additional cost on top of an employee's base wage that covers benefits — health insurance, dental, vision, 401k match, workers comp, payroll taxes (Social Security, Medicare), and paid time off. You pay significantly more per employee than just their hourly rate.
Example: An employee earning $22/hr at a 30% burden rate actually costs you $22 × 1.30 = $28.60/hr fully loaded. On a 2,000-hr work year that's an extra $13,200 per employee annually that many owners overlook.
30%
Annual employee turnover rate
?
Turnover Rate
The percentage of your workforce that quits or is replaced each year. Manufacturing average in the U.S. is around 25–40%. High turnover is one of the most underestimated costs in a plant — every time someone leaves, you spend money recruiting, onboarding, and training their replacement, plus lost productivity during the gap.
Example: If you have 2 operators and a 30% turnover rate, you're replacing roughly 0.6 people per year on average. Over 5 years that's 3 full replacement cycles.
25%
Turnover replacement cost per employee
?
Turnover Replacement Cost
The total cost to replace one employee who leaves. This includes job posting fees, manager time spent interviewing, HR onboarding time, training materials, and the productivity loss while the new hire learns the job. Industry estimates for hourly manufacturing roles typically run $3,000–$7,000 per replacement.
Example: A $4,500 replacement cost with 25% annual turnover on 2 employees = $2,250/year in turnover cost that disappears when you automate the position.
$
Simple mode: Enter your current defect rate and expected improvement. Leave throughput at 0 if you're not expecting volume gains.
Production & Quality
Parts produced per hour (current)
Current defect / scrap rate
4%
Expected defect rate after automation
0.5%
Expected throughput increase
20%
Material cost per part (for scrap calc)
$
Margin per additional part produced
$
Simple mode: Just enter the total project cost and expected equipment life. We'll use standard estimates for everything else.
Project Investment
Total project cost (equipment + integration)
$
System useful life
yrs
Annual maintenance cost
?
Annual Maintenance Cost
The ongoing yearly cost to keep the automated system running — preventive maintenance, spare parts, service contracts, and occasional repairs. A common rule of thumb is 2–5% of the initial equipment cost per year.
Example: A $185,000 robot cell at 3% = $5,550/year in maintenance. This gets subtracted from your annual savings to give you the true net benefit.
$
Discount rate (WACC)
?
Discount Rate / WACC
WACC stands for Weighted Average Cost of Capital — essentially the minimum return your company needs to justify an investment. It reflects the cost of the money you're spending (interest on loans, return investors expect, opportunity cost).
Example: If your WACC is 8%, a dollar of savings in year 5 is only worth about $0.68 in today's money. This is why the NPV calculation uses it — to compare future savings to today's investment on equal footing. Most small manufacturers use 8–12%.
8%
Tax incentive / grant offset
?
Tax Incentive / Grant Offset
Any government grants, tax credits, or incentives that reduce your net investment cost. Michigan has several programs for manufacturers investing in automation, including the Michigan Business Development Program and federal Section 179 equipment deduction. If you don't know your number, leave this at $0.
Example: Section 179 lets you deduct up to $1,160,000 of equipment cost in the year of purchase. At a 25% effective tax rate, a $185,000 robot cell could yield a $46,250 tax benefit that directly reduces your net investment.
$
Implementation downtime loss (one-time)
?
Implementation Downtime Loss
The one-time cost of lost production while the automation system is being installed and commissioned. Your line is down for days or weeks during installation — this captures the revenue or margin lost during that window.
Example: If your line produces $3,000/day in margin and installation takes 3 days, your downtime loss is $9,000. It's a one-time hit that gets added to your net investment cost.
$
Talk to a Real Advisor
Have a question about your numbers? Send it to Neil at Trestle Automation Advisors — your ROI data is included automatically so you get a specific answer, not a generic one.
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Neil will follow up within one business day with a specific answer based on your numbers.
Analysis Results
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Enter your numbers
Fill in the Labor, Quality, and Project tabs to the left, then click Calculate ROI to see your full analysis.