How to use the Invoice Processing Cost Calculator
- Enter volume, handling time, staff cost and error data.
- Set your target touchless rate and automated cost.
- Read per-invoice and annual savings.
How it works
Cost per invoice = (Minutes ÷ 60 × Hourly cost) + (Error rate × Cost per error). Blended cost = Touchless % × Automated cost + (1 − Touchless %) × Manual cost.
Worked example
12 minutes at 400 an hour plus 8% rework at 600 costs 128 per invoice. With 60% touchless at 40 each, the blended cost is about 75, saving roughly 1.27 million a year on 2,000 invoices a month.
Good to know
Use your own timing data; published averages vary widely.
Include rework and exception handling, not just keying time.
Savings are estimates and exclude software cost.
Frequently asked questions
Invoices processed end to end without manual intervention.
Divide total processing cost (labor, rework, overhead) by invoices processed.
Rework and exceptions often cost more than the first pass.
Results are estimates for information only and are not accounting, financial or legal advice.