Cost & ROI
Three Numbers and an Honest Formula. No Magic Calculators.
If the ratio isn't 2:1 within 18 months, don't automate — it's not an opportunity, it's a fad.
In short
The real ROI (Return on Investment) is calculated with three numbers: person-hours/week on the current process × hourly cost of the role × 52, plus error rate × average cost/error. Compare the result with the total investment + annual operating cost (API — Application Programming Interface, lets two applications communicate; + maintenance). Minimum acceptable threshold: a 2:1 ratio within 18 months. Below that, automation isn't worth it.
- Person-hours × hourly cost × 52 = direct annual loss
- Error rate × average cost/error = indirect loss
- Initial investment + annual operation = total cost
- Minimum threshold: 2:1 in 18 months
The Complete Formula, in Detail
Annual Benefit = (hours_per_week × hourly_cost × 52) + (errors_per_year × average_error_cost) + (lost_customers × average_customer_value). Total Cost = initial_investment + (monthly_API_cost × 12) + (annual_maintenance). ROI = (annual_benefit × 1.5) / total_cost. If ROI ≥ 2 in 18 months, it's a good project.
Common Calculation Mistakes
Four pitfalls that make ROI seem better than it is:
- Ignoring recurring operating costs (API, maintenance, training)
- Ignoring internal team time during implementation
- Using "best-case scenarios" instead of averages
- Not including the cost of change (training, resistance, downtime)
How We Calculate, Transparently
In every audit, you receive a spreadsheet with all explicit assumptions. You can change any number and see the effect on ROI. We don't sell AI with "promises" — we sell with your numbers on the table.