How to Model the ROI of Automation Before You Build
A simple framework for putting a defensible number on an automation project before you commit engineering budget.
Velixor Labs · 6 min read
Every automation proposal should survive a CFO's spreadsheet.
Start with volume and time
Tasks per month × minutes per task × loaded hourly cost gives you the current spend. This is your ceiling.
Apply an honest automation rate
Few workflows go to 100%. We model 60–80% for first releases and let the data adjust it.
Add the error cost
Manual processes carry rework. Multiply the error rate by the cost of correction — it is often larger than the labour line.
Subtract the run cost
Model inference, infrastructure and monitoring. Be generous; models get cheaper, surprises do not.
Payback, not percentage
Boards approve payback periods. Under six months, approval is usually straightforward.