Capacity is not cash
Hours released can improve service, reduce a backlog or let your team do more work. Salary costs do not automatically fall. Only the cash-converted portion counts toward cash payback.
Tool 01 / Automation economics
Make the numbers visible.
Compare conservative, moderate and optimistic scenarios. Change the assumptions to match your actual work.
PLAN BEFORE YOU AUTOMATE
What is your time
really worth?
Explore the economics of AI automation. Separate time you get back from money you actually save.
Free calculator · No signup · Calculated in your browserScenario estimates, not forecasts. No results are sent to Precogniz by this calculator.
02 / Understand your results
Start with a pilot
Measure a week of manual work, then test automation on the same task. Include checking, exceptions, failed runs and maintenance before choosing a reduction percentage.
Count the full cost
Include subscriptions, API usage, support and recurring review costs in the monthly field. Put training, integration and initial configuration in setup cost.
Calculation method and assumptions
Baseline hours = people × monthly tasks per person × minutes per task ÷ 60. Released hours = baseline hours × time reduction. Capacity value = released hours × hourly cost. Realized cash = capacity value × cash conversion. Net monthly cash = realized cash − monthly software and maintenance. First-year net cash = 12 × net monthly cash − setup cost. Payback = setup cost ÷ positive net monthly cash.
Cash break-even reduction = monthly cost ÷ (baseline labor value × cash conversion). This is operating break-even, excluding setup. Values above 100% are infeasible. No taxes, discounting, ramp-up, revenue uplift or quality effects are modeled. The same workload and costs are assumed every month.
Worked example: monthly reporting
Five people completing 20 half-hour tasks each use 50 hours per month. At ₹500 per hour and a 40% time reduction, 20 hours are released, worth ₹10,000 in capacity. With 0% cash conversion and ₹3,000 monthly software costs, monthly net cash is −₹3,000. With 50% cash conversion, net cash becomes ₹2,000 and a ₹10,000 setup cost pays back in 5 months. These are illustrative assumptions, not measured outcomes.
When should you avoid automation?
Pause when errors cannot be reliably detected, sensitive data cannot be protected, task volume is too low, or review costs erase the time benefit. This calculator evaluates cost assumptions; it does not establish whether an AI system is suitable or safe for your workflow.
Understand this tool in depth
Which tasks are worth automating? →
A practical screening method for choosing a small, measurable AI pilot.
Build a fair AI workflow evaluation →
Create comparable test cases and score the output without hiding serious errors inside an average.
Find automation break-even without overstating savings →
A worked sensitivity analysis that separates operating break-even, setup recovery and capacity value.