AutoCaption Logo
ROI Accounting Assumptions

Sketch of CFO

Financial Considerations

  Fixed Costs


    Encoder Vendors

  Variable Costs:




  Payback Period

  Make vs. Buy

No "Add-Ons"

Great Support


1,440 productive hours in an employee year

  • Nominal work week is 40 hours.
  • 48 week year allows two weeks for vacation and two weeks for sick leave accrual.
  • 30 hour productive work week leaves room for employee interaction.

$29.76/hr weighted labor cost per hour captioning

  • $30,000 annual "take home" wage.
  • 30% additionally to weight for benefits and employer contributions [$30,000 take home + $12,857 in benefits/contributions = $42,857 annual employee cost].
  • 1,440 of 2,080 hours annually are directly productive [$42,857 annual employee cost ÷ 1,440 productive hours per year = $29.76 weighted cost per productive hour].

8 year straight-line depreciation

  • Most computer and professional video equipment has a practical economic life of 5 years.
  • 8 years of straight line depreciation allows some recovery value.

$10,930 capital investment

  • $6,000 for AutoCaption
  • $1,400 for a Windows 2000® computer with 512Meg RAM, 3.0 GHz Pentium CPU and monitor (Note: on the secondary market Windows 2000® is less expensive than XP® or Vista®).
  • $2,500 for a VHS/SVHS VTR with a built-in time code reader and RS-422 remote control port.
  • $30 for cables.

It takes 6 hours to caption 1 hour of video

But in the real world this isn't a constant number.  Depending on the complexity of the project captioning an hour of video can take from a "mere" four hours to a rare (thankfully) 10 hours.

  • And that excludes transcription time because the client typically provides a script or transcript.  Add 4 hours per hour of video for transcription by a competent transcriptionist.
  • 2 hours are typically spent editing captions and checking the spelling of names and terms-of-art used in the video.
  • 1.5 hours are spent deciding when and where each caption will appear.
  • 1 hour is spent in client care, unplanned activities, setup, and training.  For example, figuring out how to effectively describe a comic's falsetto voice to deaf viewers.
  • 0.5 hours making client changes.
  • 1 hour encoding the video.

The market price for 1 hour of captioning is $800

There's a wide range in both caption quality and what's charged for captioning.

A casual quote from a large captioning enterprise may be $1,200 for a half hour, a high-end independent captioner might quote $450 for a half hour, and a low end captioner may advertise teaser rates as low as $180 for a half hour.

But based on our relationships with professional captioners, we believe $800 per hour is an appropriately conservative estimate for this exercise.

Important Legal Notice:  Information herein is based on generalizations, estimates, and educated guesses.  Your actual experience may vary, so it is important to perform and rely on your own management analysis.

double rule
Summary       Costs       Buy       Powerful_Tools       Technical

The_Process        Downloads       Contact_Us       Home
double rule

W3C HTML 4.01 Strict certificationSite Copyright 2006 Image Logic Corporation
Artwork ©Bradley Bleeker, illustrator
captioning_cost_assumptions.html  70212