QA Test Automation ROI Calculator
Project the return on investment of automating QA by comparing manual testing hours, automation build effort, maintenance workload, and quality gains.
Indicative ROI model; validate assumptions with finance and engineering leads before committing budget.
Examples
- 24 releases, 60 manual hours at $45, 320 build hours, 10 maintenance hours, $55 automation rate, 2-year amortisation, 12% bug reduction ⇒ ROI 164.21% | Annual net $50,576.00 | Payback 4.2 months
- 12 releases, 40 manual hours at $38, 200 build hours, blank optional fields ⇒ ROI 95.95% | Annual net $10,792.00 | Payback 8.5 months
FAQ
How should I estimate bug escape reduction?
Look at the proportion of production issues attributable to regression gaps and apply the expected reduction from automated coverage.
What amortisation period should I use?
Two years is common for automation suites before major refactors; adjust to match how often your stack or requirements shift.
Can I include tool licensing fees?
Yes. Add the cost per release to the automation maintenance hours by converting license spend into equivalent engineer hours.
Why compare against the combined cost base?
ROI divides net benefit by the total invested capital—initial build plus ongoing automation effort—to mirror financial reporting conventions.
Additional Information
- Manual testing cost equals releases × manual hours × hourly cost.
- Automation maintenance defaults to 8 hours per release when no figure is supplied.
- Bug escape reduction captures the downstream savings from fewer production incidents.