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Resources · Tool

Automation Payback Calculator

Six inputs, an indicative cost band, and a payback period. It applies three thresholds that can each return don't build this — a floor on recoverable hours, a ceiling on payback period, and a test that the saving clears its own running cost. Those thresholds are the reason this is worth reading.

A machined steel beam balance tipped decisively to one side, a stack of small turned weights outweighing a single larger block on the raised pan, a red band painted across the beam.
Takes
3 minutes
You get
Annual recoverable hours, payback in months, and a go / no-go verdict
Cost
Free, no sign-up

Everything below runs in your browser. Nothing you enter is sent to us, stored, or logged, and closing the tab discards it. The figures are pre-filled with an ordinary example so you can see the shape of the answer — replace them with yours. Raise the build complexity or drop the volume and the same example stops passing.

The work as it stands

UNIT 01

Take one process, not a department. The calculator is only honest at the level where somebody can actually count.

How many times the task runs in a typical month.

runs

Hands-on time for one run, start to finish. Waiting time does not count unless somebody is watching it.

minutes

Fully loaded: salary, CPF, benefits and overhead, not the hourly rate on a payslip. For most Singapore SME back-office roles this lands between S$28 and S$55.

S$per hour
How often does a run have to be redone or corrected?

Rework is charged at one and a half times the original run here, because a redo is the task plus the discovery that it was needed.

What kind of decision it is

UNIT 02

This is the input people get wrong, and it decides the answer. Automation takes on a share of the work, and hands part of that share back as supervision.

How is the decision inside this process made?

What it would take to build

UNIT 03

Cost is driven by how many boundaries the build crosses, not by how clever it is. Bands are indicative ranges for the Singapore SME market, quoted wide on purpose.

What does the automation have to reach?

Result

UNIT 04

Build it

10 monthsPayback, worst case

Pays for itself in about 10 months

The process consumes about 1075 hours a year today, including rework. Automation of the kind you have described can take on 753 of those, and hands back 135 as supervision and exception handling — leaving 617 genuinely recoverable hours, worth S$23,448.

Against a build of S$8,000 to S$18,000 and running costs near S$2,400 a year, that repays between 5 months and 10 months. That is a straightforward case. The thing most likely to break it is not the technology — it is whether the 135 hours of supervision land on somebody who has time for them.

Annual hours, before and afterStacked bar showing 1,075 hours split into Genuinely recovered, 617 hours; Back as supervision, 135 hours; Still done by hand, 323 hours.Genuinely recovered: 617 hoursBack as supervision: 135 hoursStill done by hand: 323 hoursGenuinely recovered617 hoursBack as supervision135 hoursStill done by hand323 hours
Where the year's hours go if you build it. The middle segment is the part most business cases forget: automated work still gets checked, and the check is charged against the saving rather than added to it.
Current annual effort
1,075 hours
Handed back as supervision
135 hours
Genuinely recoverable
617 hours
Value of recovered time
S$23,448 / yr
Indicative build
S$8,000 – S$18,000
Running cost
S$2,400 / yr
Net annual benefit
S$21,048
Payback range
5 months – 10 months

Take it with you

The result as plain text. Paste it into an email, a board paper, or a request for quotation — no address needed, and it stays readable when it is forwarded to somebody who was not in the room.

What this assumes

UNIT 05

Automation break-evenA chart with time in months on the horizontal axis and cumulative money on the vertical axis. A horizontal line marks the one-off build cost. A rising line shows cumulative net benefit, which is the recovered time less the annual running cost. The point where the rising line crosses the build cost line is marked as break-even. A second, shallower rising line shows what happens when supervision and running costs eat most of the saving: it never reaches the build cost line inside the chart, which is the case the calculator returns as do not build.Cumulative valueMonths after go-liveOne-off build costBreak-evenSupervision eatsthe saving
Cumulative benefit has to climb past the build cost and keep climbing past the running cost. The three thresholds in the calculator are three ways this line fails to get there.

A calculator whose workings are hidden is an argument you cannot check. These are the assumptions behind the number above, so you can disagree with them in specific rather than general terms.

  • Rework costs 1.5× a first-pass run. A redo is the task again plus the work of establishing that it was needed.
  • Supervision is charged against the saving. Automated work is checked, and exceptions still land on a person. Rules-shaped work gives about 10% of the automated time back; judgement-shaped work gives back 30%.
  • Running cost is 15–22% of the build midpoint a year, with a floor of S$2,400. That covers licences, support, and the hours the system will demand from whoever owns it.
  • Cost bands are indicative for the Singapore SME market and are quoted wide deliberately. A point estimate from six inputs would be false precision, and a vendor quoting one from this little information is guessing at you rather than for you.
  • No benefit is claimed for quality, speed or risk. Those are frequently the real reason to automate and they are genuinely hard to price, so they are left out entirely. If the case only works once you count them, that is worth knowing about the case.

The thresholds that return a stop are 120 recoverable hours a year, a payback longer than 36 months at the top of the cost band, and any saving that fails to clear its own running cost.

Technical references

UNIT 06

What the reasoning on this page is drawn from. Where a standard costs money to read it is marked, and where a free document covers the same ground better it is listed first.

Links open in a new tab so anything you have entered above survives. Every one was checked at build time; if one has rotted since, tell us and it comes out rather than getting patched from memory.

Every one of these tools is a compressed version of a conversation. If yours turned up something you would rather talk through than read about, that is what the scoping call is for — bring your result with you.

Pressure-test these numbers with an engineer

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