How to Calculate the Return on Investment of a Robotic System

When purchasing a robotic system, it is important to understand the Return on Investment or ROI. The ROI is the amount of time it takes for a robot's production to pay itself back to the company in labor and savings. This typically takes place between 6-18 months depending on the size of the initial investment. ​

How to Calculate the Return on Investment of a Robotic System


Return on Investment (ROI) is an important aspect to calculate when deciding whether or not a robotic system would pay off in your shop. Basically, ROI is the amount of time it would take for a robot’s production to pay itself back to the company through labor and savings. The typical payback for any robotic system, new or used, is between 6-18 months, depending on the size of the initial investment.

Why choose to switch to a robotic system instead of using manual labor? The bottom line is this – a robotic system is usually able to run at 95 percent efficiency, while the average laborer is usually about 20-25 percent efficient during any given shift. This is not the fault of the laborer – humans require breaks, days off, and their bodies get tired throughout their shift. Robots do not run into this problem, and in many cases, a robot can perform the work of up to four manual laborers, per shift. This means that one robotic system can do the work of 12 laborers over one given day. That shows the return on investment in the labor cost savings alone.

So, how do you go about calculating the ROI on your possible or current robotic system? RobotWorx has made it easy for you with our ROI Calculator. This calculator will show you the savings your company will accrue each year with the robotic system, using default assumptions for your labor rates. These labor rates can be changed to reflect your exact labor rates, making the calculations more accurate. However, labor savings are not the only factor that should be considered when calculating ROI. There are other factors, like training costs, programming and runoff costs, warranty and benefits, etc., which are all accounted for in our ROI Calculator.


Once your robotic system has seen its full ROI after 6-18 months, the possibility for savings is limitless for your company. There is a tremendous savings and payback because you now possess a robot with the ability to function for the next 20 years or more without issue. The savings are exponential at that point.

Are you interested in learning more about ROI, and how it could benefit your company’s automation plans? Then you should contact RobotWorx experts online or at 740-251-4312 for more information.

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