Warehouse Automation ROI Calculator

Quick answer: Annual savings combine labor hours × loaded rate with quantified error or scrap reduction—use the same definitions as your ops baseline. Compare to equipment ROI for asset-only cases.

Where automation ROI shows up first

Pick/pack and replenishment often dominate labor hours; error savings spike when barcode or vision cuts mis-picks—tie each line to a process owner.

ROI versus payback on capex

See ROI vs payback when the board cares about months to recover cash versus percentage return.

Frequently asked questions

How are labor savings calculated here?

Labor savings equal annual hours removed from the budget multiplied by fully loaded hourly cost. Add error and scrap savings separately when quality projects have their own line items.

What about implementation downtime?

Subtract one-time lost throughput or add it to project cost depending on how finance capitalizes cutover—be explicit in the business case.

Should savings include depreciation?

Usually no—annual savings are operational; depreciation is an accounting allocation on the investment side. Avoid double-counting.