How to calculate automation ROI without complex spreadsheets

How to calculate the ROI of an automation without complex spreadsheets

The real problem with ROI in automation is not that it’s hard to calculate.It’s that it has become hard to use.

Endless spreadsheets.Fragile assumptions.Models so sophisticated that no one ever revisits them once the project is approved.

When ROI becomes complex, it stops helping decisions.

ROI does not exist to impress.It exists to decide ⚠️

👉 ROI of process automation: how to decide what to automate so the return actually exists.

Why complex models don’t help decision-making

Complex ROI models promise accuracy.In practice, they deliver something else: paralysis.

The more assumptions you add, the more fragile the result becomes.And when no one fully trusts the final number, ROI stops guiding decisions and turns into a checkbox.

The problem is not Excel.The problem is believing that better decisions require more calculation.

A good ROI model doesn’t answer everything.It answers just enough to decide whether it’s worth moving forward or not.

Minimum variables needed to estimate ROI

To decide well, you don’t need a perfect model.You need few variables — but the right ones.

In automation, ROI usually depends on four minimum dimensions:

• Time: how long the process takes today versus after automation

• Volume: how often it occurs

• Error / rework: the cost of getting it wrong

• Risk / dependency: what happens if it fails or if a key person is unavailable

These variables are not about precision.They are about structuring the conversation 🧠

👉 11 - Time as real capacity

👉 12 - Error and rework

👉 13 - Operational risk and dependency

A simple, realistic example

A typical scenario — without heavy spreadsheets:

A process takes 30 minutes today.It happens 200 times per month.It has a 10% rework rate.It depends on one key person.

You don’t need a complex model to ask the right question:

If automation reduces time, lowers rework, and removes critical dependency, the ROI doesn’t need to be exact to be obvious ⚠️

The goal is not to hit the perfect number.The goal is to avoid automating something that changes nothing important.

Common mistakes when calculating ROI

The same mistakes show up again and again:

• Calculating only hours saved

• Ignoring rework and error costs

• Forgetting maintenance and adaptation

• Assuming perfect adoption

• Forcing ROI to justify a decision already made

When ROI is used to justify, it stops protecting the business.And when it stops protecting, the project is already at risk 😶‍🌫️

How to use ROI to prioritize

ROI is not a final report.It’s a comparison tool.

It helps answer questions like:

• Which process frees the most real capacity?

• Where is error the most expensive?

• Which automation reduces risk the most?

That’s why ROI doesn’t decide alone.It works together with process selection criteria.

👉 Which processes generate real ROI when automated

Calculating ROI without complex spreadsheets is not about oversimplifying analysis.It’s about making it usable.

💡If ROI doesn’t help you decide, it gets in the way.And ROI that gets in the way is usually a sign that the process was never worth automating.