Calculate the current annual workload
Multiply time per task by annual frequency and the number of people involved. Use a realistic employment cost, including the costs you normally include when planning capacity. Do not use a director's charge-out rate unless that is genuinely the capacity being released.
- Current annual hours = hours per task × annual occurrences × people
- Current capacity cost = annual hours × realistic hourly employment cost
Estimate the net time reduction
Estimate the drafting or processing reduction, then subtract the time needed to prepare inputs, review output and correct errors. Run a conservative case first.
- Gross hours saved = current hours × expected reduction
- Net hours saved = gross hours saved − annual setup and review hours
- Annual capacity value = net hours saved × hourly employment cost
Subtract the full cost
Include the subscription, implementation, integrations, training, maintenance and review time. A £20 subscription can still be expensive when the process needs two hours of senior checking every month.
- Net benefit = annual capacity value − annual software cost − setup cost
- Payback months = setup and first-year software cost ÷ monthly capacity value
Do not call all capacity profit
Saved capacity becomes cash only when cost is actually removed. It may instead allow faster response, more consistent work or more useful work from the same team. Those outcomes matter, but describe them accurately.