September 24, 2026 · ClarioAI
How to Calculate the ROI of AI Automation
A simple formula to estimate whether an automation will pay for itself.
The basic formula
**Annual savings = hours saved per week × loaded hourly cost × 48 working weeks**
**Payback period = build cost ÷ monthly savings**
Worked example
A team spends 6 hours a week chasing invoices, at a loaded cost of $40/hour:
- Annual savings: 6 × $40 × 48 = $11,520
- Monthly savings: about $960
- A $1,125 build pays back in roughly 1.2 months
What the formula leaves out
- Faster response times, which often win more deals
- Fewer errors from manual data entry
- Staff time moved to higher-value work
Pick the right process
The best candidates are frequent, rules-based and currently done by paid staff. See [business process automation](/business-process-automation) for common examples.
Run your own numbers with our free [automation ROI calculator](/roi-calculator).