Add up the full project cost: equipment, tooling, safety components, integration, training and downtime during installation. Then estimate annual savings from labor reallocation, scrap and rework, throughput and overtime. Simple payback is total cost divided by annual savings. Test your assumptions on shifts, uptime and cycle time, since those drive the result more than the robot price.
A good automation business case uses full costs and realistic savings.
Full project cost
| Item | Notes |
|---|---|
| Robot or machine | Including controller |
| End effector and tooling | Grippers, fixtures, changeovers |
| Safety components | Scanners, light curtains, guarding |
| Integration | Engineering, programming, commissioning |
| Training | Operators and maintenance |
| Installation downtime | Lost production during install |
| Ongoing | Maintenance, spares, software |
Annual savings and gains
- Labor hours reallocated to higher-value work.
- Scrap and rework reduced.
- Extra throughput or shifts.
- Overtime and temporary labor reduced.
Simple payback
Payback (years) = total project cost / annual net savings.
ROI over the system’s life adds savings across the years and compares them to the total cost.
Test the assumptions
- Shifts per day and days per year.
- Uptime and changeover time.
- Achievable cycle time, proven in a trial if possible.
- Ramp-up period.
Choose the right arm with cobot vs industrial robot, and connect it with the right PLC. Browse safety and planning.
Common questions
What is a typical payback period?
It varies widely with shifts, labor costs and utilization. Projects running multiple shifts usually pay back faster than single-shift cells.
Should I include integration costs?
Yes. Integration, tooling, guarding and programming can rival or exceed the robot's own price.
What about financing or leasing?
Leasing and robots-as-a-service spread costs over time. Compare total cost over the expected life.
Which savings are often missed?
Reduced scrap, fewer injuries from repetitive or heavy tasks, more consistent quality and the ability to take on extra work.