How to Calculate ROI on Robot Hire: Step by Step
Before committing to a robot hire or RaaS subscription, you need to know the numbers stack up. This guide provides a practical ROI framework you can apply to any robot category, with worked examples from real UK deployments.
The Basic ROI Formula
Robot hire ROI is straightforward: subtract the total cost of the robot hire from the total value it generates, then divide by the cost and multiply by 100 to get a percentage.
ROI (%) = ((Value Generated - Total Cost) / Total Cost) x 100
The challenge lies in accurately quantifying both sides of the equation. Value generated includes direct labour savings, increased throughput, reduced errors, and revenue uplift. Total cost includes hire fees, any integration work, staff training time, and operational adjustments.
Step 1: Quantify Your Current Costs
Map the process the robot will handle and calculate what it costs today. For a restaurant delivery task, this might be the hourly wage of a server multiplied by the hours spent carrying food, plus the opportunity cost of that server not upselling or attending tables. For manufacturing, calculate the labour cost per unit produced, scrap rate, and downtime. Be thorough: include employer National Insurance, pension contributions, and agency fees if applicable.
Step 2: Estimate Robot-Driven Savings
Based on your current costs, estimate the savings a robot will deliver. Be conservative. Typical benchmarks from UK deployments:
- Restaurant delivery robot: saves 2-3 hours of server time per shift, equivalent to £25-£40 per day
- Cobot on a production line: increases throughput 15-30% and reduces scrap by 5-10%
- Cleaning robot: replaces 4-6 hours of manual floor scrubbing per day, saving £50-£80 in labour
- Event robot: generates 20-40% more social media engagement and measurable footfall increase at exhibition stands
Step 3: Calculate the Total Hire Cost
With roboTED, pricing is transparent. A BellaBot RaaS subscription at £599 per month includes the robot, delivery, setup, training, insurance, and maintenance. There are no hidden costs. For daily hire, multiply the daily rate by the number of days needed. Add one-off costs like any workspace modifications (rarely needed) and the time investment for staff training (typically 30-60 minutes, included in the hire).
Step 4: Run the Numbers
Worked Example: Restaurant BellaBot
A London restaurant hires BellaBot on a RaaS subscription at £599 per month. The robot saves an average of 2.5 server hours per day across two shifts, at an effective labour cost of £14 per hour including NI and pension.
Monthly saving: 2.5 hours x £14 x 26 operating days = £910
Monthly cost: £599
Net monthly benefit: £311
Monthly ROI: 52%
Annual net benefit: £3,732
Step 5: Factor in Intangible Benefits
Some benefits are harder to quantify but still real. Reduced staff fatigue leads to lower turnover and fewer sick days. Consistent robot performance eliminates variation in quality. For customer-facing robots, the novelty factor drives word-of-mouth marketing and social media coverage that would cost thousands in advertising. Include these as qualitative notes alongside your financial ROI to strengthen the business case.
When ROI Is Negative
Not every deployment delivers positive ROI. If your operation only runs 2-3 days per week, daily hire may cost more than the labour it saves. If your workspace requires significant modification, the upfront investment may push the payback period beyond what is acceptable. Being honest about these scenarios is important. A trial hire lets you test real-world performance before committing to a long-term subscription.
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