Calculate Payback
Estimate annual benefit, ROI and simple payback from real plant assumptions.
Open Automation ROI CalculatorThe wrong automation question is "Can this be automated" Almost anything can. The right question is "Will automation pay back under our production conditions"
What Counts as End-of-Line Automation
- Case forming, sealing, coding and labelling
- Checkweighing, metal detection and vision inspection
- Strapping, stretch wrapping and palletizing
- Conveyors, accumulation and robotic handling
Basic ROI Formula
ROI = Annual Net Benefit / Total Investment
Payback Period = Total Investment / Annual Net Benefit
If investment is Rs 45 lakh and annual net benefit is Rs 18 lakh, payback is 2.5 years.
Benefit 1: Labour Saving
Calculate loaded cost, not only salary. Include contractor cost, overtime, absentee coverage, supervision and HR/admin burden. If five people are redeployed and each costs Rs 3.2 lakh per year, labour benefit is Rs 16 lakh.
Benefit 2: Throughput Improvement
If manual packing or palletizing limits output, automation may release upstream capacity. Count only extra output that the market can absorb.
Benefit 3: Damage and Rework Reduction
Manual handling can create crushed cartons, poor wrapping, label damage and dispatch complaints. Include repacking material, rework labour and customer debit notes.
Benefit 4: Downtime Reduction
Automation helps when it removes a real bottleneck and stabilises flow. Bad automation can create new downtime if layout, accumulation or integration is weak.