Scenario

The setup for this example.

An operations team reviews 450 items per workday. Each review takes about 2.5 minutes, reviewers cost $32 per loaded hour, and QA adds 15% overhead. The team is considering automation that covers 60% of reviews, costs $1,800 per month, and takes $8,000 to implement.

Inputs

The numbers used in the worked example.

Manual Review Cost Example

manual review cost example

InputValueNote
Reviews per day450
Workdays per month22
Minutes per review2.5
Loaded hourly cost$32
QA overhead15%
Automation coverage60%
Automation monthly cost$1,800
Implementation cost$8,000

Manual review cost formula

Formula

450 reviews/day * 22 days * 2.5 minutes / 60 * 1.15 * $32 = $15,180/month

Automation savings are modeled as the covered share of current cost minus ongoing automation cost.

Result

What the example produces.

Monthly reviews9,900
Loaded review hours474.4 hours
Current monthly cost$15,180
Gross savings at 60% coverage$9,108
Net monthly savings$7,308
Simple paybackAbout 1.1 months

Interpretation

How to read this result.

  • The queue is large enough that small changes in review time or coverage rate materially change the savings estimate.
  • The result is a reason to inspect workflow quality, escalation rules, and automation risk, not an automatic approval to buy software.
  • If the coverage assumption falls below 25% or the tool creates extra rework, the payback can stretch quickly.

Next step

Run the same workflow with your own assumptions.

  1. Run the manual review cost calculator with your actual queue volume and hourly cost.
  2. Use the automation ROI calculator to add maintenance time, error reduction, and setup work.
  3. Use the vendor comparison calculator if more than one automation option is realistic.

This is a worked example, not a recommendation. Real results can change with contracts, workflow quality, taxes, staffing, vendor terms, and data quality.