Video analytics quotes come in different shapes: a large one-time fee and a small monthly fee, no upfront fee and a larger monthly one, or something in between. To compare them, add each quote's one-time fee to 36 months of its monthly fee, then check how fast the benefit you expect pays back the upfront part. With the defaults, Quote A costs ₹6.60 lakh over three years, Quote B ₹9.00 lakh and Quote C ₹6.90 lakh. A is cheapest over three years, while C pays back fastest at 3.3 months.
How the calculator works
The calculator takes seven inputs:
- Quote A, B and C: one-time (₹). Everything you pay once: licence, setup, edge box or server if bought, commissioning. Enter 0 if the quote has no upfront charge.
- Quote A, B and C: per month (₹). Everything recurring, converted to a monthly figure: subscription, AMC, cloud or hosting, support. An annual AMC of ₹60,000 is ₹5,000 a month.
- Expected benefit per month (₹). What you expect the system to be worth to you each month: idle machine hours recovered, overtime avoided, output gained. This is your estimate, and the payback depends on it entirely.
The formulas, applied to each quote:
3-year cost = one-time + 36 × monthly
Net monthly benefit = expected benefit − monthly
Payback (months) = one-time ÷ net monthly benefit
Three special cases. If the net monthly benefit is zero or negative, payback shows never: the monthly fee eats the whole benefit. If the one-time fee is zero and the net benefit is positive, payback shows from month 1. And the headline names the quote with the lowest 3-year cost; if two quotes tie, the earlier letter wins. The calculator does not discount future payments, add escalation or add GST.
Worked example (India)
Three quotes for the same plant and the same scope. All figures are assumptions for illustration; they are the calculator's default inputs, not market or vendor prices, and Mama names no prices.
| Quote A | Quote B | Quote C | |
|---|---|---|---|
| Shape | Large upfront, low monthly | No upfront, high monthly | Middle |
| One-time | ₹3,00,000 | ₹0 | ₹1,50,000 |
| Per month | ₹10,000 | ₹25,000 | ₹15,000 |
| 36 months of fees | ₹3,60,000 | ₹9,00,000 | ₹5,40,000 |
| 3-year cost | ₹6.60 lakh | ₹9.00 lakh | ₹6.90 lakh |
| Net monthly benefit (₹60,000 − monthly) | ₹50,000 | ₹35,000 | ₹45,000 |
| Payback | 6.0 months | from month 1 | 3.3 months |
The ranking depends on the horizon. Over 36 months A wins by ₹30,000. But C is cheaper than A until the two lines cross: A costs ₹1,50,000 more upfront and saves ₹5,000 a month, so A only catches up at month 30. If you might switch vendors or stop within two and a half years, C is the cheaper commitment. B never needs capital, which matters if cash is tight, but it is ₹2.40 lakh dearer than A over three years.
Payback also looks different from the total. B pays back "from month 1" only because there is nothing to pay back. It still costs the most.
What typical numbers look like
We found no credible public benchmark for what Indian factories pay for video analytics, either upfront or monthly. Vendors mostly quote on request, and quotes differ in scope, camera count and what sits on your side of the line. Benefit figures are rarer still: any monthly benefit you enter should come from your own numbers, such as idle hours valued at your machine hour rate, not from a vendor's case study. How quotes are structured, and which hidden lines to add, is covered in how factory video analytics is priced in India.
What this number does not tell you
- Whether the quotes cover the same scope. Put the same cameras, sites, features and service levels under each quote before comparing. A quote that excludes the edge box, the NVR upgrade or the uplink is not cheaper, it is incomplete.
- Costs on your side. Internet uplink, replacing cameras that cannot stream, power for an on-site server and staff time to act on the reports are not in a vendor's quote. Add them to the one-time or monthly lines if they differ between quotes.
- Escalation. A monthly fee with a yearly escalation clause, say 7% (an assumption), changes the 3-year total. The calculator holds fees flat; enter an average monthly figure if you know the escalation.
- Time value of money. ₹1 lakh paid today costs more than ₹1 lakh spread over three years. The calculator does not discount, which slightly flatters large upfront quotes like A.
- Whether the benefit is real. The payback is only as good as the benefit you enter. Hours a system finds are worth money only if you act on them and can sell what you then make. Before signing, ask each vendor to prove accuracy on your own footage: see how to verify video analytics accuracy claims.
- What happens when you leave. Ask who owns the data and the box, and how footage and personal data are deleted at exit. Section 8(7) of the DPDP Act, 2023 requires the factory, unless a law requires retention, to erase personal data once the purpose is served and to cause its data processor to erase it too (DPDP Act). Under the DPDP Rules, 2025 the erasure duty takes effect on 14 May 2027, inside a 3-year contract signed today.
- Tax treatment. Upfront purchases and subscriptions are treated differently for depreciation and GST input credit. Ask your CA.
Related guides
- How Factory Video Analytics Is Priced in India: Comparing Quotes on a 3-Year ₹ Total
- Factory Video Analytics RFP Template (India): Acceptance Criteria, DPDP and Exit Clauses
- Checking a Video Analytics Vendor's "95% Accurate" on Your Own Footage
- Does Camera-AI Pay for Itself in an Indian Factory? The Honest ₹ Payback
- The CCTV AMC Contract: What Indian Factory Owners Should Check Before Renewing
FAQ
How do I compare video analytics quotes with different pricing? Convert each to a 3-year total: the one-time fee plus 36 months of the monthly fee. With the defaults, ₹3,00,000 + 36 × ₹10,000 = ₹6.60 lakh beats ₹0 + 36 × ₹25,000 = ₹9.00 lakh and ₹1,50,000 + 36 × ₹15,000 = ₹6.90 lakh.
How is payback calculated? Divide the one-time fee by the monthly benefit left after the monthly fee. With ₹60,000 of benefit, Quote C pays back ₹1,50,000 at ₹45,000 a month, in 3.3 months.
Is a zero-upfront subscription always cheaper? No. It needs no capital, but over three years it can cost the most. In the example, the no-upfront quote is ₹2.40 lakh dearer than the large-upfront one.
What if the monthly fee is higher than the benefit? Then payback is never: the system costs more each month than it is worth to you. Recheck the benefit estimate or the scope before going further.
Should I compare over three years or five? Use the period you realistically expect to keep the system. The calculator uses three years. A longer horizon favours quotes with large upfront fees and low monthly fees.
Mama can draw a camera plan for the machines behind the benefit you entered. Leave an email or phone in the form below.