RPA costs and ROI: how to calculate what automation delivers
"What does it cost?" is usually the first question you ask when it comes to automation. A logical question, but really only half the story. RPA costs only mean something once you set them against what a software robot delivers. A robot costing a few thousand euros that saves tens of thousands of euros in manual work is not a cost item but an investment.
What do RPA costs consist of?
When you compare quotes, it is important to know exactly what is included. The total costs of process automation with RPA fall into five items.
| Cost item | What it covers | One-off or recurring |
|---|---|---|
| Licences | Use of the RPA software, often per robot, user or run | Recurring |
| Process analysis | Mapping, simplifying and documenting the process | One-off per process |
| Build and test | Developing the robot, building in exceptions and testing with real data | One-off per process |
| Infrastructure | A computer, server or virtual machine on which the robot runs | Recurring |
| Management and maintenance | Monitoring, adjustments after updates and resolving faults | Recurring |
Why RPA licence costs differ so much
Anyone exploring the market is sometimes taken aback by the differences. One vendor charges thousands of euros per robot per year, while another offers RPA at no extra charge in an existing package. That difference stems mainly from the pricing model and the target group.
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Enterprise platforms
Enterprise platforms are built for organisations with hundreds of robots, extensive management teams and strict scalability requirements. They often charge per robot, per user or per licence type. A platform like UiPath offers a huge amount of functionality, but the licence costs are steep for most SMEs.
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Integrated solutions
Integrated solutions are part of a broader software package. Zoho RPA is a good example. If you use Zoho One, Zoho RPA is included in your subscription at no extra cost. The licence item then largely disappears and your investment lies mainly in the setup.
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Specialist providers
Specialist providers such as Collabotics develop custom software robots for specific processes. The pricing model is then often tailored to the process and the level of support.
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Look at the pricing model
Do not just compare the annual amount, but also how that amount scales. A low entry price per robot can turn out expensive if you are running ten robots two years from now. Conversely, a higher fixed price can be attractive if you want to automate many processes. You can read more about choosing the right solution in Choosing RPA software.
Hidden costs of process automation
Besides the items that appear in every quote, there are costs that are less visible. Include them from the start, and you will not face any surprises afterwards.
How to calculate the RPA ROI
Return on investment shows how much an investment delivers relative to what it costs. For RPA, you calculate it in three steps.
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Calculate the savings
Time per task × number of times per month × percentage the robot handles × hourly cost.
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Add up the costs
One-off costs for analysis and build, plus the recurring costs for licences, infrastructure and management.
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Set them against each other
ROI = (savings − costs) ÷ costs × 100 per cent.
Worked example: processing purchase invoices
Suppose your accounts team processes 400 purchase invoices a month. Each invoice takes an average of 8 minutes of manual work. The robot fully handles 90 per cent of the invoices; it passes the rest on to an employee. We put the hourly cost of an administrative employee, including employer's contributions, at an indicative 45 euros.
| Item | Calculation | Amount per year |
|---|---|---|
| Time saved | 400 × 8 min × 90% = 48 hours per month | 576 hours |
| Savings in money | 576 hours × €45 | €25,920 |
| One-off costs | Analysis, build and test | €6,000 |
| Recurring costs | Management and infrastructure, €200 per month (licence included in Zoho One) | €2,400 |
| Net result year 1 | €25,920 − €6,000 − €2,400 | €17,520 |
The RPA ROI in the first year is then €17,520 ÷ €8,400 × 100 = well over 200 per cent. From the second year onwards, the one-off costs drop away and the return rises further.
All amounts in this example are indicative and exclude VAT. Your own outcome depends on the volume, the complexity of the process and the RPA software you choose. You can find more background on calculating the return on automation in a knowledge article from UiPath.
The payback period of RPA
The payback period tells you after how many months the one-off investment has been recovered. You calculate it by dividing the one-off costs by the net savings per month.
In the worked example above, the savings are €2,160 a month. Subtract €200 in recurring costs and you are left with a net €1,960 a month. The one-off investment of €6,000 is then recovered in just over three months.
With well-chosen processes, a payback period of a few months to a year is realistic. If it takes longer, the process may be too small or too complex for a first robot. In that case, see whether another process would be a better start. In RPA examples you will find 15 processes that often pay for themselves quickly.
Soft benefits count too
Not everything RPA delivers can be expressed in euros. Yet for many organisations these benefits are just as important.
Include these benefits in your business case, even if you cannot quantify them exactly. They make the difference between a robot that only saves time and a robot that genuinely moves your organisation forward.
Is RPA cheaper than an API integration?
That depends on the situation. An API integration is usually more stable and faster, but building one can be expensive. Especially if one of the systems does not have a good API or if you have to hire a developer for custom work.
| Situation | Most cost-effective choice | Why |
|---|---|---|
| Both systems have a standard integration | API integration | Low build costs and little maintenance |
| One system has no API | RPA | Building an integration is then expensive or impossible |
| You need results quickly | RPA | A robot is often live sooner than a custom integration |
| Very high volumes per day | API integration | An API processes large numbers faster and more reliably |
| Temporary solution, for example during a migration | RPA | Low investment for a limited period |
In practice, it is often not a choice between one or the other. Many organisations use API integrations where they are available and deploy a software robot for the gaps in between. That way you keep the costs of process automation low and get the maximum return from both.
How to measure the savings after go-live
A business case drawn up in advance is an estimate. Only once the robot is running do you see what it really delivers. By measuring the right things, you know whether your expectations are being met and where you can make adjustments.
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Record a baseline
Before go-live, note how much time the process takes, how many errors are made on average and what the lead time is. Without a baseline, it is hard to show later what the robot delivers.
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Measure the volume the robot processes
Most RPA software keeps track of how many tasks the robot carries out and how many of them are completed successfully. That gives you immediate insight into the time saved.
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Keep track of the exceptions
How many cases does the robot pass on to an employee? If that number falls as you improve the robot, your return rises.
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Look at the quality
Compare the number of errors and corrections with the baseline. This is often the benefit employees notice first.
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Evaluate regularly
Schedule a short evaluation every quarter. Are the figures still right, has the volume changed and are there new processes that qualify?
With this data, you not only have insight into the current robot, but also a strong case for the next step. You can read how to set up a complete project, including measuring and management, in Implementing RPA. Are you an SME and still not sure whether it pays off for you? Then also read RPA for SMEs. You will find the basics of the technology on our page about robotic process automation.
Our main question was whether it would pay for itself. That happened faster than we had expected.
Have your business case calculated
You can only really assess RPA costs once you know what they deliver in return. With a good analysis of your processes, you know in advance what a robot costs, what it delivers and when you will have recovered the investment.
Mobile XL is happy to work through the numbers with you. We look at which processes deliver the most, choose the RPA software that fits your systems and budget, and draw up a clear business case with realistic figures. That way you make a decision based on facts instead of assumptions.
Frequently asked questions about RPA costs
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An average is hard to give, because RPA costs depend heavily on the software you choose, the number of robots and the complexity of the process. The biggest variable is the licence cost. With solutions that are part of an existing package, such as Zoho RPA in Zoho One, you mainly pay for the setup.
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Licences, process analysis, build and test, infrastructure and management. Analysis and build are one-off per process; licences, infrastructure and management are recurring costs.
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First calculate the savings: time per task × number of times × percentage the robot handles × hourly cost. Subtract the total costs and divide the result by the costs. Multiply by 100 for the percentage.
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With well-chosen, high-volume processes, a payback period of a few months to a year is realistic. In the worked example on this page, the investment is recovered in just over three months.
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Enterprise platforms are built for hundreds of robots and often charge per robot or per user. Integrated solutions are part of a broader package, which makes their licences much more affordable.
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Yes, Zoho has included RPA in Zoho One at no extra cost. You then mainly pay for setting up and managing the robots. Do check whether your subscription and the number of agents you need fit your plans.
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Think of your own employees' time during analysis and testing, adjustments after software updates, handling exceptions and any extra user licences in other systems.
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Record a baseline of time, errors and lead time in advance. Then measure how many tasks the robot processes, how many exceptions it passes on and how the quality develops.
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Often it is, if a system has no API or if you need results quickly. For systems with a standard integration and very high volumes, an API integration is usually more cost-effective in the long run.
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That depends on how often your systems change and how complex the robot is. Always budget a fixed amount for management or make arrangements about it with your implementation partner. In the worked example, we use an indicative 200 euros per month for management and infrastructure.
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