How to Calculate Test Automation Return On Investment (ROI) Right?

If you want your software to be excellent, you need to constantly test it. Automation of this process allows you to reduce errors due to the human factor, conduct deeper diagnostics, and identify even the most minor bugs, which can then lead to big problems. The problem is that this is quite expensive because you need to use expensive software and the services of such testers are quite expensive. In addition, setting up automatic testing takes a lot of time. As a result, many are wondering whether it is worth investing in it. Today we want to discuss how you can calculate the ROI of investing in test automation and what benefits it has.

Benefits of Automated Testing

As a rule, automatic testing is implemented at the last stages of software development or after release. There is an opinion that this is only necessary for large projects, but the truth is that it is necessary for any software if the creators of it care about the quality of the product. This works in the background and instantly reports errors that could negatively impact the quality of researched app.

Using automated testing has a huge number of advantages, among the most important are:

  • Impeccable software quality;
  • Reduces time for re-testing;
  • Helps to reach the release stage faster;
  • Eliminates the possibility of early errors;
  • Improves teamwork.

Experience the benefits of outsourcing software testing by cooperating with a professional company. Through this partnership, software quality and efficiency are enhanced, guaranteeing reliability, security, and seamless functionality. This approach minimizes errors and ensures a smooth user experience. By allowing the specialized team to handle testing, other aspects of your project can receive increased attention. Embrace a future where software operates flawlessly, freeing resources for core business activities and fostering growth and success. All the information about automated testers on the link –

What is the ROI of automated testing?


ROI (Return on Investment) of test automation refers to the value gained from automating software testing processes. A positive ROI indicates that the benefits outweigh the costs, making test automation a valuable investment for a software development project.

A good business owner will not invest money unless he is sure that this investment will bring profit and what kind of reward you can receive. The test automation ROI is a metric that gives people in business a numerical representation of the profit they can make by implementing an automation strategy into their QA workflows.

Why should you calculate ROI?

With ROI metrics in place, it will be easier for you to determine whether implementing test automation makes economic sense for your business. This involves weighing the risks of profit and loss for short-term and long-term software testing needs.

Profitability indicators include the following indicators:

  • Estimation of when you will make a profit and when it will pay off;
  • Is it a suitable complement to manual testing;
  • Allows you to justify your automation strategy and attract investment from other decision-makers.

Now that you understand all the benefits of automation and profitability calculations, let’s discuss in more detail how to do the calculations.

The formula for calculating profitability


First, you need to parse the formula. To do this, you need to know a few numbers – investment benefits and investment costs.

To calculate the investment benefit, you need to calculate all the savings and risk reduction that may be associated with the implementation of automation. It includes:

  • Hours saved due to the use of automation;
  • Money saved as a result of reducing the number of testers;
  • Avoidable costs (includes costs for troubleshooting problems in using the software).
  • Investment costs are the money you need to invest to implement automation. It includes:
  • The cost of creating your testing team or third-party services and others.

Once you have completed the above calculations, you can use the formula. It’s much simpler than you might think:

  1. Subtract costs from benefits;
  2. Divide the remaining amount by costs;
  3. Multiply this by 100.

After doing this simple math, you get a percentage that shows the expected profit from implementing an automation strategy.

Aspects you should to pay attention

At first glance, the calculations are quite simple. If you were paying a manual tester $23 per hour, then at first glance it looks like you’ll be spending $184 less per day. We advise you to study the activities of testers in more depth and determine what you should pay attention to first:

  • Evaluate which tests you are going to automate;
  • Define basic test cases;
  • Regression tests;
  • Evaluate missed errors;
  • Evaluate what test environments you will use.

If after calculating the ROI of test automation you get positive numbers, automation can be beneficial in the long term for your business development.



In result, automated testing offers numerous advantages, including impeccable software quality and efficient team collaboration. Despite the initial cost challenges, calculating the Return on Investment is vital for businesses. By evaluating savings in hours, reduced tester expenses, and avoidable costs against the investment, a clear picture of the potential profit emerges. Attention to detail, such as identifying specific tests for automation and evaluating test environments, is essential. Positive ROI figures indicate that automated testing can be a strategic and beneficial long-term investment for businesses aiming for high-quality software development and sustainable growth.