The Manual Tax CalculatorWhat your manual processes really cost
Stop guessing what your broken processes cost. Enter five data points and get an honest assessment, built with the HAR Labs 80% efficiency ceiling because we don't sell fantasies.
Enter your process data and hit calculate to see your results.
How the calculator works
No hidden math. These are the exact steps and assumptions behind your numbers.
- Hours per year = runs per month × minutes per run ÷ 60 × 12.
- Labor cost = hours per year × your hourly rate. Use a burdened rate if you have it.
- Rework cost = labor cost × your error rate × 1.5. The 1.5 is our assumption that fixing a mistake takes about one and a half times the original effort. It is not an industry benchmark.
- Manual Tax = labor cost + rework cost.
- Potential savings = 80% of the Manual Tax. Someone still handles the exceptions.
Worked example
A task runs 40 times a month, takes 25 minutes, is done at $38/hour, and 5% of runs need fixing. That is 200 hours a year, $7,600 in labor and $570 in rework: a Manual Tax of $8,170, of which about $6,540 is recoverable.
The Complexity Score (0–100) adds points for frequency, time per run and error rate. It is a quick read on urgency, not a dollar figure. To rank several processes against each other, use the F × T × E prioritization matrix.
How do I calculate the cost of a manual process?
Work out how many hours it takes per year, multiply by the burdened hourly rate of whoever does it, then add the cost of fixing its mistakes. The steps above are exactly what this calculator does.
What hourly rate should I use?
The burdened rate: salary plus benefits, payroll taxes and overhead, divided by hours worked. If you don't have it, a common rule of thumb is annual salary ÷ 2,080 × 1.3.
Why does it assume 80% savings instead of 100%?
Automations still need someone to handle exceptions and keep them running. Counting 80% keeps the estimate realistic.
Automation Readiness Audit
Run through this checklist. If you can't check most boxes, automate the foundation first.
Repeatability
Data Integrity
Tool Readiness
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Check the boxes that are true for one process
Pick the process you just priced, or the one your team complains about most.
Got several processes and not sure which to price first? Rank them with the Automation Priority Scorer.
Our rule of thumb: 20 minutes, 80 times a month
A process that takes more than 20 minutes and runs more than 80 times a month adds up to over 300 hours a year. That is usually worth automating.
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