Kola ROI dashboard showing operating cost, shrinkage, and cycle count reductions

ROI Calculator

What is your facility's
payback period?
Run the numbers.

Enter your facility parameters below and see a detailed breakdown of labour savings, cycle count reduction, pick error elimination, and shrinkage recovery β€” plus the impact of Canada's Productivity Super-Deduction on your net cost.

Methodology

How the calculator
builds your estimate.

Each factor in the model is grounded in published industry benchmarks for warehouse and distribution operations. The variables you enter β€” facility size, operation type, location, and shift pattern β€” are applied against these benchmarks to generate your specific estimate. Results may vary Β±30% depending on your existing processes, SKU complexity, and current accuracy baseline.

Labour Efficiency Savings
KolaTM's continuous inventory intelligence eliminates the labour time currently spent on manual stock checks, reactive searches, and discrepancy investigation. The model calculates your total warehouse labour cost β€” based on facility size, wage rate, shift pattern, and a 30% burden rate for benefits and overhead β€” and applies a 15% efficiency recovery rate to the portion of time not already allocated to cycle counting. This reflects the labour hours freed when workers no longer need to physically verify locations that Kola already monitors. Source: Warehouse Education and Research Council (WERC); industry operations benchmarks
Cycle Count Savings
Manual cycle counts are a significant and persistent labour cost in every warehouse operation. Industry data shows that cycle counting absorbs an average of 10% of total warehouse labour hours annually. KolaTM's continuous Digital Twin eliminates the need for manual counts entirely β€” the system reconciles inventory in real time without human intervention. The model applies a 60% reduction to the cycle count labour cost, reflecting the elimination of all scheduled counts and the majority of investigative recount cycles. Source: MHI Annual Industry Report; Aberdeen Group supply chain studies
Pick Error Reduction
Pick errors β€” wrong item, wrong quantity, wrong location β€” cost operations an average of $40 per incident when corrective handling, customer service, returns processing, and reshipment are accounted for. Industry benchmarks place the average pick error rate at approximately 1.5% of all picks. KolaTM's real-time inventory accuracy reduces this rate by an estimated 40%, by surfacing location discrepancies and anomalies before they propagate into the pick queue. The model calculates error volume from your picks-per-day estimate by operation type. Source: Tompkins Associates; Supply Chain Dive industry benchmarks
Shrinkage Reduction
Inventory shrinkage β€” comprising theft, administrative error, supplier fraud, and damage β€” averages 1.25% of inventory value across North American distribution and warehouse operations. The model calculates shrinkage exposure from inventory density by operation type (ranging from $68/sq ft for e-commerce to $211/sq ft for cold storage) applied to your facility footprint. KolaTM's persistent visual monitoring and anomaly detection reduces shrinkage by an estimated 40%, by detecting discrepancies at the point they occur rather than during periodic audits. Source: NRF National Retail Security Survey; CSCMP Supply Chain Quarterly
System Cost Inputs
The upfront cost is calculated at $5.11 per square foot for hardware (sensor modules, mounting, and installation), plus a flat $30,000 professional services estimate covering system integration, ERP/WMS connection, and initial configuration. The SaaS subscription is priced at $0.48 per square foot per year, capped at $120,000 annually for large facilities. The subscription cost is deducted from gross annual savings before the payback period is calculated, ensuring the result reflects true net return β€” not gross savings before operating costs. Kolaβ„’ published pricing β€” hardware from $3,500/module; SaaS from $1,000/site/month
Operation Type Multipliers
Each operation type carries different labour density, inventory value, and pick volume profiles. E-commerce / Fulfilment operations are high-velocity with dense pick activity and moderate inventory value. 3PL / Contract Logistics carries the highest inventory density and transaction volume. Retail Distribution is high-inventory-value with predictable cycle patterns. Manufacturing / Industrial has lower pick frequency but high inventory value and strict compliance requirements. Cold Storage / Food has the highest inventory density but lower pick rates, with added regulatory pressure around traceability. These profiles directly affect which savings categories are largest for your operation. Based on WERC DC Measuresβ„’ benchmarking data and MHI operation profiles

Canada's Productivity Super-Deduction

The tax case for acting
before 2030.

Canada's 2025 federal budget introduced a significant capital incentive that materially improves the financial case for deploying KolaTM. For Canadian operations, this is enacted legislation β€” not a projected or anticipated benefit β€” and it creates a defined window that closes progressively after 2029.

What the Productivity Super-Deduction is

Bill C-15, which received Royal Assent and came into force in March 2026, introduced the Productivity Super-Deduction as a new accelerated Capital Cost Allowance mechanism. Under existing CCA rules, technology assets are typically depreciated at 45–55% declining balance over several years β€” meaning the full tax benefit of a capital purchase is spread across five or more years. The Super-Deduction eliminates this deferral for qualifying assets.

Qualifying businesses can now deduct 100% of the capital cost of eligible assets in the year they are placed in service. This is a full immediate write-off β€” not enhanced accelerated depreciation, but complete Year 1 recognition of the entire capital expenditure.

KolaTM installations qualify directly. The legislation explicitly identifies computers, data network infrastructure, and AI tools as qualifying asset categories under the productivity-enhancing assets definition. A KolaTM system β€” comprising sensor hardware, edge compute nodes, and the connected SaaS platform β€” falls squarely within this definition.

What it means in practice β€” a worked example

Consider a 100,000 sq ft retail distribution facility in Ontario. The hardware installation cost under KolaTM pricing is approximately $541,000 ($5.11/sq ft). The SaaS subscription of $48,000/yr is an operating expense and is already fully deductible annually β€” no election required.

Under traditional CCA (Class 10 at 30% declining balance), Year 1 tax savings on the hardware would be approximately $43,000, declining each year thereafter. The total tax savings over five years would be approximately $143,000 β€” but spread unevenly across the period.

Under the Super-Deduction, the entire $143,000 tax benefit is captured in Year 1 β€” reducing the effective net cost of the installation to approximately $398,000 before a single dollar of operational savings is counted. This single-year recognition fundamentally changes the payback calculation. At an estimated net annual saving of $265,000 for that facility, the tax-adjusted payback period is approximately 18 months rather than the unadjusted 24 months.

Year Traditional CCA (Class 10, 30%) Super-Deduction (100% Year 1)
Year 1 ~$43,000 tax savings ~$143,000 tax savings
Year 2 ~$30,000 tax savings β€”
Year 3 ~$21,000 tax savings β€”
Year 4 ~$15,000 tax savings β€”
Year 5 ~$10,000 tax savings β€”
5-Year Total ~$119,000 ~$143,000 β€” Year 1 only

Tax figures based on a 26.5% combined federal/Ontario corporate rate. Consult your tax advisor for your specific provincial rate and asset classification.

The phase-out schedule β€” why 2029 matters

The full 100% deduction is available for qualifying assets placed in service on or before December 31, 2029. After that date, the deduction steps down on the following schedule:

Year Asset Placed in Service Deduction Rate Approximate Year 1 Tax Saving (100K sq ft example)
2026 – 2029 100% ~$143,000
2030 75% ~$107,000
2031 50% ~$71,500
2032 25% ~$35,700
2033 and beyond Standard CCA ~$43,000 (declining balance)

Operations that deploy within the current full-benefit window capture a tax advantage that is materially larger than anything available after 2029. For procurement committees evaluating timing of a KolaTM deployment, this schedule is a concrete financial argument for proceeding before year-end 2029.

The SaaS subscription ($0.48/sq ft/yr, capped at $120,000 annually) is treated as a fully deductible operating expense each year under standard income tax treatment β€” no special election or CCA classification required.

100%
of hardware CapEx deductible
in Year 1 under the Super-Deduction
~$143K
Year 1 tax relief on a 100,000 sq ft
installation at a 26.5% combined rate
2029
Last year of full 100% deduction
β€” phase-out begins 2030

Tax figures are estimates based on a combined federal/Ontario corporate rate of 26.5%. Actual rates vary by province and corporate structure. Consult your tax advisor. This is not tax advice.

Ready to take the next step?

Request a full financial briefing.

We can run a detailed ROI analysis specific to your facility β€” including a tax-adjusted deployment scenario and a phased rollout cost model. No commitment required.

Canada 647-367-9233 USA 954-900-8811 info@chestnutcompute.com