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Learn how to use the RPA ROI Calculator
Glossary & FAQ
Key Terms
- RPA (Robotic Process Automation)
- Technology that uses software robots (bots) to automate repetitive, rule-based business processes that are normally performed by humans.
- ROI (Return on Investment)
- A financial metric that measures the profitability of an investment. Calculated as (Net Benefit ÷ Investment Cost) × 100%. A positive ROI means the investment is generating more value than it costs.
- Transaction
- A single instance of a business process. For example, processing one invoice, entering one data record, or handling one customer request.
- Payback Period
- The time required for cumulative savings to equal the initial investment. After the payback period, the automation generates pure net positive value.
- Break-Even Point
- The specific month where cumulative savings first exceed cumulative costs. After this point, the net benefit is positive.
- Loaded Hourly Rate
- The true cost of an employee per hour, including salary, benefits, taxes, and overhead. Typically 1.3-1.5x the base hourly wage.
- Error Rate Reduction
- The percentage decrease in process errors expected from automation. RPA bots follow rules consistently, eliminating human errors like typos, missed steps, and data entry mistakes.
- Net Benefit
- The difference between cumulative savings and cumulative costs at any given point. A positive net benefit means the automation has generated more value than it has cost.
- FTE (Full-Time Equivalent)
- A unit of measurement representing one employee working full-time for a year (typically 1,760 hours). An FTE of 0.5 means the equivalent of half a full-time employee's workload. Used to translate time savings into staffing impact.
- NPV (Net Present Value)
- A financial metric that calculates the present-day value of future cash flows, minus the initial investment, using a discount rate. Positive NPV means the project adds value; negative means it doesn't meet the required rate of return.
- Discount Rate
- The interest rate used to calculate NPV. It represents the cost of capital or the minimum acceptable rate of return. A higher discount rate means future savings are worth less today. Default is 8%.
- Sensitivity Analysis
- A technique for understanding how changes in input variables affect the output. In the ROI Calculator, you can adjust transaction volume, time saved, and error reduction to see how they impact annual savings.
- Process Template
- A pre-configured set of default input values for common automation processes (e.g., Invoice Processing, Payroll). Templates help you get started quickly by providing realistic baseline numbers you can customize.
Frequently Asked Questions
The calculations are as accurate as the inputs you provide. The calculator uses standard financial formulas for ROI, payback period, and break-even analysis. For the most reliable results, use actual data from your processes rather than estimates. Consider running a time study to measure manual processing times accurately.
Currently, the comparison feature works within a single project. To compare scenarios from different projects, you can export them to Excel and combine the data manually, or create a new project that contains all the scenarios you want to compare.
Include all one-time costs: process analysis and documentation, bot development/programming, testing and quality assurance, deployment and go-live support, initial training for the team, infrastructure setup (servers, licenses). Do not include ongoing costs like monthly licenses or support — those go in the Monthly Maintenance Cost field.
A negative annual ROI means the first year of savings doesn't cover the development cost. This doesn't necessarily mean the automation isn't worth it — check the payback period. If it's under 18-24 months, the automation may still be a good investment. Consider: lowering the development cost, increasing the scope (more transactions), or looking for processes with higher time savings.
No. Your projects, scenarios, and reports are completely private and only visible to your account. Each user has their own isolated workspace. Administrators can see all data through the admin panel, but other regular users cannot access your data.
Typical RPA implementations see 80-95% error reduction for rule-based processes. Start conservatively (e.g., 50-70%) if you're unsure. Consider: How structured is the process? Highly structured = higher reduction. How much human judgment is involved? More judgment = lower reduction. What's the current error rate? Higher current rates mean more room for improvement.
NPV (Net Present Value) tells you whether an automation investment creates value after accounting for the time value of money. Money received in the future is worth less than money today because of inflation and opportunity cost. A positive NPV means the project's returns exceed the cost of capital (discount rate). The default 8% discount rate represents a typical corporate cost of capital — adjust it to match your organization's rate.
Go to your Profile (click your name in the top navigation, then "Profile"). You'll find a "Preferred currency" dropdown where you can choose EUR, USD, or GBP. This setting affects all displays throughout the app, including charts, live previews, and exported PDF/CSV/Excel reports.