Easy way to calculate Return on Investment in Automation

Automation of software testing process always sounds good to Quality Engineer (QE) managers. Intuitively, you see that creating an automated test one time and then running it hundreds or thousands of times will enable you to expand test coverage, find defects earlier, and focus manual test effort where it is really needed.

Return on Investment

 Thought of sharing the basic formula for calculating ROI(Return on Investment):-

 Automation Cost = Price Of Hardware + Price of Software(Tools) + Development Cost + Maintenance Cost + Execution Cost 

Manual Testing Cost = Development Cost + Maintenance Cost + Execution Cost

 ROI = (Manual Testing Cost – Automation Cost)/Automation Cost 

 Now as Regression increases, thus resulting in repeat ion in execution of Test cases, it results in surge in ROI by Automation Tool.

We can say that general Principle for Automation is “More Repetitive tasks are ideal candidate for Automation” producing more ROI

The aim is to have an ROI >>> than 1 


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