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Methodology

These calculators use transparent planning formulas. They are designed to make assumptions visible so you can replace defaults with observed values from your own operation.

Automation economics

Manual labor value estimates the annual economic value of time spent on a recurring process.

annual labor value = people × minutes per occurrence ÷ 60 × occurrences per week × working weeks × hourly labor cost

Recovered capacity applies the estimated automatable share. Realized cash savings may be lower than capacity value because time saved does not automatically reduce payroll or create revenue.

recovered capacity value = manual labor value × automatable share

Payback period compares one-time implementation cost with recurring net monthly benefit. If recurring benefit is zero or negative, payback is not reached.

payback months = implementation cost ÷ monthly net benefit

E-commerce unit economics

Contribution profit before ads starts with order revenue and subtracts variable costs tied to the order.

contribution = AOV − COGS − fulfillment − other variable costs − payment/platform fees

Contribution margin expresses that contribution as a percentage of order value.

contribution margin = contribution ÷ AOV

Break-even ROAS is the ratio of order revenue to the maximum ad spend the order can support before contribution falls to zero.

break-even ROAS = AOV ÷ contribution before ads

Maximum CPA is the acquisition cost that consumes the available contribution at break-even. A target profit margin reduces the allowable CPA.

target max CPA = contribution before ads − (AOV × target profit margin)

Discount impact compares contribution per order before and after a price reduction, then estimates the additional order volume required to recover the same total contribution.

Important limitations

These models do not automatically capture every real-world factor. Depending on your business, you may need to account for fixed overhead, taxes, returns, refunds, failed payments, attribution error, repeat purchase behavior, financing cost, implementation risk, change management, downtime, or the difference between capacity value and actual cash savings.

Use the calculators as decision aids and scenario models, then compare projections with real operating data.