Return of Investment (ROI)
You can use the below form to calculate the annual total cost of manual testing activities, let us denote it as C. Once we automate the manual recurring testing activities, you can consider this number C as annual cost savings.
Please note! that the below cost calculator feature works best on a desktop computer. If you are viewing this page via a smart phone or tablet, make sure you view it horizontally, otherwise the generated chart, which plots the annual cost savings over time, will not be properly visible. We recommend that you do your ROI calculations with a tablet, desk- or laptop computer to make sure you have enough screen space to view the chart.
| # of Production Releases Annually | PCS (whole number) |
| # Hours Spent Testing a Release | H (decimal number) |
| Value of an Hour | EUR (decimal number) |
| Years | PCS (whole number) |
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|
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| Annual cost (C) | 0 EUR |
Here's an example of how an organization saves costs with test automation. In this example the ROI in the test automation is around 20 months, after which there are 52 months of saving annual manual testing cost.
And how the saved costs can be re-invested into value adding innovation and development, which eventually leads to a better Customer Experience (CX) and inevitably to more Sales. In the below diagram, we can see how, by lowering the Manual Testing Costs, let us call this variable A, we can invest more in Releases/Innovations, let us call this variable B. The relationship between variables A and B, as depicted in the diagram, should be interpreted under the Ceteris Paribus assumption, whereby all other factors influencing the system are held constant to isolate the direct interaction of A and B.
Do you want to learn more about calculating the return of investment (ROI) for test automation and why it's important? Read these blog posts:
QA doesn’t have to be the elephant 🐘 in the room!
Cost for manual work down and innovation up!
Let AI help you! 🦾
