How the calculation works
- Net hours released = runs × hours per run × effort reduction − runs × review time added.
- Value of time released = net hours × loaded hourly cost. It shows what the capacity is worth. It is not a saving.
- Cash or revenue realised = value of time released × the share that turns into cash. Only the use of released time decides that share: reduced overtime or contractor spend, an avoided hire, or extra billable output.
- Year-one net = (cash realised − running costs) × 12 − one-off costs.
- Payback = one-off costs ÷ monthly net cash, shown only when monthly net cash is positive.
Quality improvements, faster turnaround and lower error rates are often the real benefit. They belong in the business case as quality measures, with their own evidence, not turned into cash. See How to calculate AI ROI honestly and the hypothetical worked examples on the evidence page.
Not sure of the inputs? Measure the current effort per run over two to four weeks before you rely on any estimate, including this one.
Disclosure:Paid engagements are contracted and delivered by Neul Labs, which Dipankar Sarkar founded and leads. Playbook recommendations stay vendor-agnostic, and we do not publish supplier rankings.