How the calculation works.
Weekly hours = minutes per occurrence × occurrences per week ÷ 60.
Average monthly hours = weekly hours × 52 ÷ 12. This is an annualised monthly average, not the exact number of working weeks in a specific month.
Monthly labour cost = average monthly hours × your hourly labour cost. Hypothetical time released = average monthly hours × the reduction percentage ÷ 100. The labour-cost equivalent of that time = hours released × your hourly cost.
The hourly cost is an input you supply. Include employment overheads only if they belong in your decision and are reflected consistently in your figure. The tool applies no taxes, benchmark wage, exchange rate or financial discount rate.
Worked example: one recurring administrative task.
This is a hypothetical example, not a client result. A task takes 15 person-minutes and happens 20 times per week. At an hourly labour cost of $30, it represents 5 hours per week and approximately 21.67 hours per month.
The monthly labour cost is $650. A hypothetical 25% time reduction releases approximately 5.42 hours per month, with a labour-cost equivalent of $162.50. This figure expresses capacity using the same hourly input; it does not establish that payroll or other expenses will fall.
Changing the currency to GBP labels the same numerical inputs in pounds. It does not convert a dollar cost into a pound cost. Enter the appropriate hourly cost for your business.
Use the estimate to choose what to investigate.
First, time a few real occurrences and check whether the frequency varies. Include everyone’s contribution, exception handling and rework when they belong to this task. Use a representative weekly average if demand is seasonal.
Then identify why the work takes time: missing inputs, duplicate entry, unclear responsibilities or a necessary quality check. Simplifying a step may be more useful than adding a tool. A 100% reduction is only a mathematical scenario; it is not a feasibility assessment.
Compare the scenario with setup effort, software fees, training, oversight and ongoing maintenance. This calculator excludes those costs. Validate quality and actual time released in a controlled trial before making a business decision.
Optimize can help structure one workflow with your team. Custom software, integrations and automation implementation are outside the standard sprint and require a separate agreed scope.