Automation is worth it when savings repay the investment within a period your business accepts. The calculation is simple if you are honest about the inputs.
Inputs to collect
- Machine or upgrade price, installed
- Operators saved per shift and shifts per day
- Monthly cost per operator
- Scrap and rework reduction
- Extra output from higher speed or fewer stoppages
The calculation
Monthly saving = operators saved × shifts × monthly cost per operator + monthly value of reduced scrap + margin on extra output. Payback in months = investment ÷ monthly saving.
A worked example with assumed numbers
Suppose a robot cell costs ₹20 lakh, saves one operator on each of two shifts at ₹25,000 per month each, and reduces scrap by ₹20,000 per month. Monthly saving is ₹70,000, so payback is about 29 months. Your own numbers will differ, so use this only as a method.
What the formula misses
Consistency, traceability and the ability to scale are hard to put in the formula but often matter most to customers.
Ask us for a payback estimate for your line.