Title: Quantifying ROI for Test Automation in Mid-Market SaaS
Authors: Quality Economics Lab
Date: 2025-09-26
Abstract
This study presents a simple ROI calculator for test automation and validates it with three
mid-market SaaS companies. We show break-even ranging from 4 to 11 months depending on
release cadence and defect cost.
1. Introduction
Automation requires upfront investment. Estimating ROI helps prioritize automation targets.
2. Methods
We estimate costs: engineer time for writing tests, CI compute, and maintenance. Benefits:
reduced manual regression effort, faster releases, fewer hotfixes. Data from three companies over
12 months.
3. Results
Break-even points: Company A (weekly releases) — 4 months; Company B (biweekly) — 7
months; Company C (monthly) — 11 months.
4. Discussion
High-frequency release organizations capture automation ROI faster. Maintenance costs are
sensitive to flakiness and test design.
5. Conclusion
Prioritize automating high-value, high-regression-risk flows first to maximize ROI.
References
[1] D. Anderson, "Measuring Dev Efficiency", 2022.
[2] P. Garcia, "Test Automation Economics", 2021.