When Does AI Agent Investment Pay for Itself?

The Payback Question 

CFOs want to know: How long until investment pays for itself? Understanding payback calculation and realistic timelines enables informed budgeting. 

Payback Formula 

Implementation cost ÷ Monthly savings = Months to payback 

By Exception Volume (Time Savings Only) 

40 exceptions monthly: 

• Monthly savings: $500 

• Payback: $35,000 ÷ $500 = 70 months 

• Assessment: Not justified on time alone 

60 exceptions monthly: 

• Monthly savings: $790 

• Payback: $35,000 ÷ $790 = 44 months 

• Assessment: Marginal 

80 exceptions monthly: 

• Monthly savings: $1,600 

• Payback: $35,000 ÷ $1,600 = 22 months 

• Assessment: Acceptable 

With Working Capital Impact (Collections) 

60 exceptions monthly: 

• Time savings: $790 

• Working capital: $5,500 

• Total monthly: $6,290 

• Payback: $35,000 ÷ $6,290 = 5.6 months 

• Assessment: Strong 

80 exceptions monthly: 

• Time savings: $1,600 

• Working capital: $5,600 

• Total monthly: $7,200 

• Payback: $35,000 ÷ $7,200 = 4.9 months 

• Assessment: Very strong 

Typical Mid-Market Payback 

Without working capital: 18-36 months  

With working capital: 6-12 months 

Working capital impact accelerates payback dramatically for AR collections 

Cumulative Value Over Time 

Year 1: Investment recovered + $10K-$40K benefit  

Year 2: $75K-$95K cumulative benefit  

Year 3: $150K-$190K cumulative benefit 

Value compounds as volume grows and costs remain flat 

The Reality 

Payback typically occurs 6-18 months for mid-market implementations. 

Working capital improvements for collections accelerate payback to 5-6 months. 

Volume threshold: 60+ exceptions monthly for reasonable payback timeline. 

Cumulative three-year value: $150K-$390K depending on volume and working capital impact. 

About the Author: This content is published by ERP AI Agent. 

Published: January 2025 | Reading Time: 3 minutes