# OCR Straight-Through Processing Rate Savings Calculator

> Source: https://netray.co/tools/ocr-straight-through-processing-rate-savings-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Model how each point of straight-through processing (touchless invoices) changes AP labor hours and cost per month.

## Category

ai-automation

## Industry

Manufacturing

## Audience

- AP manager
- Controller
- Finance transformation lead

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Invoices per month

**Key:** monthly_invoices

**Type:** number

**Default:** 6000

**Min:** 0

**Step:** 100

**Unit:** invoices

**Help:** All supplier invoices received, PO and non-PO.

#### Straight-through rate

**Key:** stp_rate

**Type:** slider

**Default:** 55

**Min:** 0

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** Share of invoices captured, matched and posted with no human touch.

#### Handling time per touched invoice

**Key:** minutes_touched

**Type:** number

**Default:** 6

**Min:** 0

**Step:** 0.5

**Unit:** min

**Help:** Keying, correction, coding and routing time for an invoice a person handles.

#### Monitoring time per touchless invoice

**Key:** minutes_touchless

**Type:** number

**Default:** 0.2

**Min:** 0

**Step:** 0.1

**Unit:** min

**Help:** Sampling and audit time spread across touchless invoices. Never assume zero.

#### Loaded AP hourly rate

**Key:** hourly_rate

**Type:** number

**Default:** 28

**Min:** 0

**Step:** 1

**Unit:** $/h

**Help:** Salary plus benefits and overhead divided by productive hours.

**Outputs:**

#### Touchless invoices per month

**Key:** touchless_count

**Expr:** monthly_invoices * stp_rate / 100

**Format:** integer

#### Touched invoices per month

**Key:** touched_count

**Expr:** monthly_invoices - touchless_count

**Format:** integer

#### AP handling hours per month

**Key:** hours

**Expr:** (touched_count * minutes_touched + touchless_count * minutes_touchless) / 60

**Format:** number

**Description:** Hours spent on touched invoices plus touchless monitoring.

#### Monthly handling cost

**Key:** cost

**Expr:** hours * hourly_rate

**Format:** currency

#### Hours if every invoice were touched

**Key:** baseline_hours

**Expr:** monthly_invoices * minutes_touched / 60

**Format:** number

#### Hours saved per month

**Key:** hours_saved

**Expr:** baseline_hours - hours

**Format:** number

**Primary:** true

#### Labor cost avoided per month

**Key:** cost_saved

**Expr:** hours_saved * hourly_rate

**Format:** currency

**Primary:** true

**Chart:**

#### AP handling hours vs straight-through rate

**Type:** line

**X:** stp_rate

**From:** 0

**To:** 100

**Steps:** 21

**Series:**

- hours
- hours_saved

**Disclaimer:** Planning estimate. Replace the defaults with times measured from your own AP queue.

## Content

**Intro:** Vendors quote OCR accuracy, but AP leaders are paid on how many invoices post without a person touching them. This calculator turns the straight-through rate into hours and dollars so you can see what each extra point is worth.

**Sections:**

#### How to use the calculator

**Body:** Enter monthly invoice volume, your current or target straight-through rate, and the average time a person spends on an invoice that falls out of automation. Add a small monitoring time for touchless invoices, because auditors and controllers still sample them. The slider lets you move the rate and watch hours, cost and savings update, and the chart sweeps the whole 0 to 100 percent range so you can spot diminishing returns.

**Bullets:**

- Measure touched minutes from timestamps in your workflow, not from estimates.
- Use total invoices, including non-PO and credit memos.
- Run it twice: once for today, once for the target rate.

#### The formula behind it

**Body:** Touchless invoices equal volume times the straight-through rate. Touched invoices are the remainder. Handling hours are touched invoices times touched minutes, plus touchless invoices times monitoring minutes, divided by 60. Savings compare that against a baseline where every invoice is touched. The model is linear, which is a deliberate simplification: real fallout is not evenly spread, and the hardest invoices (multi-page, handwritten, foreign language) tend to take longer than average.

#### How to read the result

**Body:** The hours saved figure shows capacity released, which is not the same as headcount removed. Most plants redeploy it to vendor inquiries, early-payment capture and month-end work. The chart is nearly a straight line, so the real question is how expensive the last 10 points are to reach. If moving from 60 to 70 percent needs a month of template tuning and the calculator shows only a few hours saved, the effort may not pay.

#### Common mistakes

**Body:** Counting only the keying time and ignoring the time spent chasing receipts, approvals and exceptions inflates the saving. Quoting field accuracy as the straight-through rate is the other classic error: 98 percent field accuracy across 20 fields can still leave a large share of invoices needing a fix. Also remember that straight-through requires the PO, receipt and tolerance data to be clean in the ERP, which is outside the OCR tool.

**Bullets:**

- Do not assume monitoring time is zero.
- Separate PO and non-PO invoices if their rates differ a lot.
- Re-baseline after any supplier or format change.

**Cta:** If your straight-through rate is capped by ERP match failures rather than OCR, Netray can look at the exception data and show where the fallout actually comes from.

**Faq:**

#### What is a good straight-through processing rate?

**Answer:** It depends on the share of PO-backed invoices and supplier mix. Many manufacturers see roughly half to three quarters of invoices touchless once capture and matching are tuned, with non-PO invoices much lower. Use your own measured rate as the baseline rather than a benchmark.

#### Is straight-through the same as OCR accuracy?

**Answer:** No. Accuracy measures extracted fields. Straight-through measures whole invoices that were captured, validated, matched and posted without a person. One wrong critical field can pull an entire invoice out of the flow.

#### Why add monitoring time to touchless invoices?

**Answer:** Controls and audits require sampling. Treating touchless invoices as free overstates the saving, and the sampling cost scales with volume, so a small figure per invoice is a safer assumption.

#### Does saving hours mean reducing headcount?

**Answer:** Not necessarily. The calculator shows capacity released. Whether you reduce overtime, absorb growth or move people to higher-value work is a management decision and should be stated in the business case.

## Search terms

straight through processing rate invoice, touchless invoice rate calculator, invoice OCR savings calculator, AP automation touchless rate, invoice automation hours saved, OCR straight through processing, AP automation business case

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