Free Tool · ROI Calculator

    ROI Calculator: how much does your company save by automating procurement?

    Estimate in 2 minutes the annual operational savings of automating purchase orders, invoices and supplier onboarding, using your own operating data. Transparent methodology, conservative ranges, no inflated promises.

    100% free · No sign-up to calculate

    Your current operation

    Adjust the values to your reality. Default times are conservative averages for manual operations in LATAM; you can edit them in the advanced assumptions.

    200
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    60
    6

    Salary + benefits + overhead. Starting reference: US$ 1,800.

    If you enter it, we calculate the estimated payback.

    Methodology: how we calculate ROI

    No black boxes. These are the exact formulas the calculator uses:

    1. 1

      PO savings = POs/month × 12 × (manual minutes − automated minutes) ÷ 60 × fully loaded hourly cost.

    2. 2

      Invoice savings = invoices/month × 12 × (manual − automated minutes) ÷ 60 × hourly cost, plus the reduction in exception rework (from 8% to 2%, 30 min per exception).

    3. 3

      Onboarding savings = suppliers/year × (manual hours − hours with a self-service portal) × hourly cost.

    4. 4

      Hourly cost = fully loaded monthly cost ÷ 160 effective hours.

    5. 5

      Credibility safeguard: total operational savings are capped at 40% of the annual cost of the team you entered, and the conservative range applies an additional 25% discount.

    External reference: McKinsey estimates that agentic AI can make the procurement function 25% to 40% more efficient. See the McKinsey study

    Why calculate ROI before evaluating procurement software?

    The ROI of procurement automation does not come from a feature list: it comes from your volumes (purchase orders, invoices, suppliers), your process times and your labor cost. This procurement ROI calculator turns that data into an annual savings range you can defend in front of a CFO.

    Most procurement teams in Latin America still run manual processes over email and spreadsheets: approving a PO takes days, every invoice needs manual verification and onboarding a supplier consumes hours of documentation back-and-forth. That hidden cost is exactly what this model quantifies.

    The result serves three purposes: prioritize which process to automate first, justify the investment with conservative ranges, and compare scenarios by changing the assumptions. And if you want to validate the case with your real data, request a demo.

    Frequently asked questions

    How is procurement automation ROI calculated?

    By multiplying the annual transaction volume (purchase orders, invoices, onboardings) by the time saved on each when automating, and valuing those hours at the team's fully loaded labor cost. This calculator uses exactly that logic with editable assumptions, and applies a cap of 40% of team cost as a credibility safeguard.

    What savings percentage is realistic when automating procurement?

    McKinsey estimates that agentic AI can make the procurement function 25% to 40% more efficient. In practice it depends on the starting point: highly manual operations (email + spreadsheets) capture more. That is why the calculator shows a conservative → expected range instead of a single figure.

    Does the calculator include savings from supplier negotiation?

    It shows them as an optional, separate module: between 0.5% and 1.5% of annual addressable spend, because it depends on each company's category mix and sourcing discipline. We prefer not to blend it with operational savings, which are more predictable.

    Is the result a quote or a commercial promise?

    No. It is an indicative estimate with a transparent methodology, designed to help you build your internal business case. The real case is validated with your data and processes in a demo, where you can also adjust the assumptions with our team.

    Want to validate your case with real data?

    In a 30-minute demo we review your volumes, processes and ERP, and adjust the model to your operation. No commitment.

    Request demo