For AP Teams & Finance Leaders
What is switching to electronic AP payments worth to your organization?
Input your current AP volume and check mix. The calculator estimates annual cost savings from check elimination, labor reduction, and exception handling improvement.
AP platform operator? See the AP Platform Revenue Calculator →
Current AP Volume
Monthly invoice / payment count
5,000
100200K
Total AP payments issued per month across all payment methods
Average payment / invoice size
$3,500
$100$100K
Current Payment Mix
Current check percentage
45%
0%100%
Percentage of payments currently issued as paper checks. Mid-market AP average: 30–55%.
Target check percentage after conversion
15%
0%80%
Realistic target after active supplier enablement. Best-in-class AP programs achieve 5–15% residual check volume.
Cost Inputs (adjust to your organization)
All-in cost per check issued
$11
$1$25
Includes print, postage, reconciliation labor, and exception handling. Industry range: $8–$15 (AFP, NACHA, Ardent Partners).
Cost per payment exception / return
$25
$5$100
Labor cost to research, resolve, and reissue a returned or failed payment. Includes AP staff time and banking fees.
Exception rate (% of check payments)
3%
0%15%
Percentage of checks that result in exceptions — returned checks, address errors, stale dates, lost in mail. Typical range: 2–6%.
AP staff hourly cost (fully loaded)
$35/hr
$20$100
Fully loaded hourly cost including benefits and overhead. Used to estimate labor savings from reduced manual processing.
Minutes saved per payment converted
8 min
2 min30 min
AP staff time saved per payment when switching from check to electronic — printing, stuffing, mailing, reconciliation. Estimate 5–12 minutes per check for most AP teams.
Estimated Annual Cost Savings
$0
Annual savings from converting to electronic payments
Check elimination savings
Direct cost of checks eliminated × converted volume
Direct cost of checks eliminated × converted volume
—
Exception & return reduction
Fewer failed payments, returned checks, reissues
Fewer failed payments, returned checks, reissues
—
AP labor savings
Staff time recovered from manual check processing
Staff time recovered from manual check processing
—
Total annual savings
—
—
Checks eliminated annually
—
AP staff hours recovered/yr
Additional benefit: Many AP platforms share virtual card interchange revenue with customers — typically $0.50–$2.00 per payment converted. Your platform can estimate this in the AP Platform Revenue Calculator.
Evaluating an AP automation platform?
Use this estimate as your baseline ROI case. The actual savings depend on your specific supplier mix, current AP workflow, and the platform's supplier enablement capability.
See how ExpandUp advises AP platforms →
Understanding the architecture behind AP payment economics
Check elimination savings: Converted check count × all-in check cost. Converted count = (current check % − target check %) × monthly payment count × 12. Represents the direct cost of checks eliminated.
Exception & return reduction: Converted checks × exception rate × exception handling cost × 12. Electronic payments experience significantly lower exception rates than checks — estimates assume electronic exception rate approaches zero for converted volume.
AP labor savings: Converted checks × (minutes saved ÷ 60) × hourly labor cost × 12. Reflects AP staff time recovered from check printing, mailing, and reconciliation.
Hours recovered: Annual converted check count × minutes saved ÷ 60.
Check cost research sources:
· AFP 2022 Payments Cost Benchmarking Survey: $10.00–$14.00 all-in
· NACHA Electronic Payments Benefits Calculator: $8–$15 per item
· Ardent Partners AP Automation Benchmark: $13.11 average
· IOFM: $6–$12 direct; $12–$18 fully loaded
Estimates for directional analysis only. Actual savings depend on supplier mix, AP workflow, and platform capability.
Exception & return reduction: Converted checks × exception rate × exception handling cost × 12. Electronic payments experience significantly lower exception rates than checks — estimates assume electronic exception rate approaches zero for converted volume.
AP labor savings: Converted checks × (minutes saved ÷ 60) × hourly labor cost × 12. Reflects AP staff time recovered from check printing, mailing, and reconciliation.
Hours recovered: Annual converted check count × minutes saved ÷ 60.
Check cost research sources:
· AFP 2022 Payments Cost Benchmarking Survey: $10.00–$14.00 all-in
· NACHA Electronic Payments Benefits Calculator: $8–$15 per item
· Ardent Partners AP Automation Benchmark: $13.11 average
· IOFM: $6–$12 direct; $12–$18 fully loaded
Estimates for directional analysis only. Actual savings depend on supplier mix, AP workflow, and platform capability.