Enter your assumptions
How it is calculated
Annual hours saved = weekly hours saved × working weeks. Estimated annual time value = annual hours saved × loaded labor cost per hour. Estimated net value = time value − annualized workflow cost.
Time value is not necessarily cash savings or added profit. Measure actual results, include review and rework time, and protect confidential project information. General education only, not engineering, legal, tax, or investment advice. Licensed PE judgment and local codes govern engineering work.
Example scenario
A hypothetical civil engineering firm owner estimates a workflow could save 10 hours per week, values loaded labor at $80 per hour, and enters 50 working weeks and $20,000 in annualized workflow and implementation cost. The calculator reports 500 hours saved, $40,000 in estimated time value, and $20,000 in estimated net value. These hypothetical assumptions are not a vendor claim or a promise of cash savings. The result can help the owner decide whether a workflow pilot merits closer review and what time savings would need to be demonstrated. Next, measure actual time saved on suitable work, including review and rework, and check whether the saved capacity becomes useful project time or reduced expense. The owner should also review confidentiality controls and keep licensed PE judgment and local codes in charge of engineering work.
Method, inputs and limits
Purpose
Estimate the labor time value of an AI supported workflow and subtract annualized costs.
Inputs and defaults
Hours saved: 5/week; loaded labor cost: $60/hour; working weeks: 48/year; annualized workflow and implementation cost: $8,000. Inputs are nonnegative, working weeks no more than 52.
Formulas
Annual hours saved = weekly hours saved × working weeks. Time value = annual hours saved × loaded hourly cost. Net value = time value − annualized cost.
Outputs
Annual hours saved, estimated time value, estimated net value.
Test cases, expected values
- Defaults: 240 hours; $14,400 time value; $6,400 net value.
- 10 hours/week, $80/hour, 50 weeks, $20,000 annualized cost: 500 hours; $40,000 time value; $20,000 net value.
- 0 hours/week, $60/hour, 48 weeks, $1,000 cost: 0 hours; $0 time value; −$1,000 net value.
Disclaimer
Time value is not necessarily cash savings or added profit. Actual use should be measured, with review and rework time included. Protect confidential information. General education only, not engineering, legal, tax, or investment advice. Licensed PE judgment and local codes govern engineering work.
