# The cost of manual work: a simple model you can reuse

URL: https://mechaneforge.tech/research/the-cost-of-manual-work/
Published: 2026-10-15
By: Mechane Forge

> Estimate a task’s annual cost as people × weekly hours × 46 weeks × loaded hourly cost, multiply by the share you can realistically automate, then divide the build cost by monthly savings to get payback. For example, four people spending five hours a week at $30 an hour cost about $27,600 a year.

Ask a team how much time a repetitive task takes and you will hear “not that much”. Ask them to count it and the number is usually larger. This note gives you a simple, transparent model to put a figure on it, so a decision to automate rests on arithmetic rather than instinct.


## How do you calculate the cost of manual work?

1. Hours per year = people doing the task × hours per person per week × working weeks (use 46).
2. Annual cost = hours per year × fully loaded hourly cost (salary plus overhead, not just wage).
3. Recoverable cost = annual cost × share of the task that can realistically be automated.
4. Payback (months) = build cost ÷ (recoverable cost ÷ 12).


## What does a worked example look like?

Four people each spend five hours a week copying enquiry details between a form, a spreadsheet and a CRM. At 46 weeks that is 920 hours a year. At a loaded cost of $30 an hour, that is $27,600. If 70 percent can be automated, the recoverable amount is $19,320 a year, about $1,610 a month. A $12,000 build pays back in roughly 7.5 months.

> These numbers are illustrative. Replace them with your own, and be conservative about the share you can automate.


## What the model leaves out

- Error cost: rework, missed follow-ups and wrong data have a price the model ignores.
- Speed: a faster response to a lead or customer can be worth more than the hours saved.
- Morale and focus: people do better work when the dull part is gone.
- Maintenance: a build has running costs, usually small relative to the savings.

Use the model as a floor, not a ceiling. Try it with your own figures in our [automation ROI calculator](https://mechaneforge.tech/tools/automation-roi).