Guide · Knowledge Hub
In How Many Months Does a Robot Investment Pay Off?
The most critical question of any automation investment is: “How long until this investment pays for itself?”
Guide · Knowledge Hub
The most critical question of any automation investment is: “How long until this investment pays for itself?”
ROI (Return on Investment) expresses the payback period of an investment. In automation, it shows how long it takes for the investment to pay for itself.
ROI = Investment Cost / Monthly Net Gain
For typical palletizing and machine-tending applications the payback period is usually between 12 and 24 months. It varies with the number of shifts, labor cost and capacity gain.
Basic formula: ROI (months) = Investment Cost / Monthly Net Gain. The monthly net gain is the sum of labor savings, reduced defects/waste and increased output.
The most common mistake is underestimating maintenance and operator costs and ignoring the extra gain from increased capacity.
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