ROI Breakdown: How Long Until a Cobot Pays for Itself?

Collaborative robots, also known as cobots, are an appealing investment for manufacturers and businesses looking to reduce costs while automating repetitive or labor-intensive tasks. They’re more affordable and adaptable than traditional robots, making them accessible to companies of all sizes. However, one important question often comes up: when does a cobot pay for itself?

In this article will explain the cost factors, potential savings, and how to estimate your return on investment.

Understanding the Cost of a Cobot

The cost of a cobot system involves more than just the robot arm itself. You must also consider end-of-arm tooling, such as grippers or 3D scanners like Trackit or the MetroY series, along with software licenses, integration, and training.

Typically, a Revopoint Robot cobot arm costs between $10,000 and $15,000. The costs for integration and setup can range from $1,000 to $10,000 or higher, depending on the complexity of the application.

Even with these additional costs, cobots are generally more affordable than traditional industrial robots, and in most cases, they don’t require fencing or costly safety systems.

Where the ROI Comes From

The main source of ROI is labor cost reduction. Cobots can operate continuously without interruption, making them ideal for repetitive and prolonged tasks. They decrease the need for human workers in these areas, which can lead to substantial savings over time.

Besides saving labor, cobots can also boost productivity, ensure more consistent results, and minimize errors. They help lower scrap rates and enhance quality by executing tasks with repeatable accuracy. When used for inspection or quality control, especially with technologies like 3D scanners, they can identify defects early and help reduce rework.

Estimating the Payback Period

Let’s look at a basic example. Imagine a cobot system that costs $20,000. It replaces a task currently handled by a worker who earns $20 per hour. The cobot operates for 8 hours a day, 5 days a week, 52 weeks a year. That adds up to $41,600 in annual labor cost savings.

Meaning the cobot would pay for itself in just under 6 months. After that, it continues to generate value every year, often with minimal maintenance costs.

Of course, real-world scenarios differ. The actual payback time depends on the number of shifts the cobot runs, the task's complexity, ongoing maintenance needs, and the system’s efficiency.

ROI Calculator

Modify the information in the Value column to obtain a quick indicator of how quickly a cobot can start saving money.