How to Calculate the ROI of a Robotics Project?

Investing in a robotics solution is a strategic decision that can transform your operations and improve your company's competitivity. However, before launching into a robotics project, it's important to assess the return on investment (ROI) to determine whether the project is financially viable. This article will guide you in calculating the ROI of your robotics project, while highlighting the tangible and intangible benefits of an automated solution.

Understanding Total Costs

When investing in robotics, you’re not just buying a robot—you’re investing in a complete turnkey solution that includes:

• The robot itself (e.g., collaborative or industrial robots).
• Accessories and tools like grippers, sensors, and cameras.
• Custom configuration and programming.
• Integration into your existing processes.
• Employee training and ongoing maintenance.

Steps to Calculate ROI

1. Identify Total Costs

Include:

• Acquisition costs: Robot price, accessories, software, and installation fees.
• Operational costs: Maintenance, electricity, and servicing.
• Training costs: Time and resources needed to upskill employees.

2. Estimate Tangible Benefits

These are measurable savings and gains, such as:

• Labor cost reduction: Fewer hours spent on repetitive or labor-intensive tasks.
• Increased productivity: Faster production rates or higher output volumes.
• Material and error reduction: Robots offer precision and consistency, minimizing waste and mistakes.

3. Consider Intangible Benefits

While harder to quantify, these advantages provide real value:

• Improved working conditions: Reduced risk of musculoskeletal disorders (MSDs) and fewer sick days, leading to higher employee satisfaction.
• Flexibility and responsiveness: A connected robot can adapt to production changes and optimize processes in real-time.
• Enhanced brand image: Using advanced technology can strengthen your market positioning and attract new clients or top talent.

4. Calculate the ROI

The payback period (or ROI) is calculated by dividing the total investment cost by the annual benefits generated.

Payback Period = Total Costs / Annual Benefits

Annual net benefits include savings and additional revenue brought by automation.

A Practical Example

Let’s say a small manufacturing company invests $250,000 in a robotic solution.

• Total Costs: $250,000 (purchase, installation, training, etc.).
• Estimated Annual Benefits: $100,000 (labor savings, increased production).

Calculation: $250,000 / $100,000 = 2.5 years

This means the investment will be fully paid off in 2.5 years, after which the solution will start generating net profits. For a more precise calculation, consider factors such as maintenance costs or any decline in benefits over time.

Need a Simple Tool for Your Calculations?

At Revtech Systèmes, we understand that every project is unique. That’s why we’ve developed an online ROI calculator to help you quickly and easily estimate your payback period.

Click here to explore our ROI calculator.

With our expertise in turnkey robotic solutions, we’re here to guide you every step of the way, ensuring the success of your automation project.