As a financial institution, running a branch today is not simple. Staffing is tighter, hiring is harder, and turnover is constant. Compliance requirements keep growing, and customers expect quick, accurate, and personal service every time. You are asked to stretch every hour and every dollar further than the day before.
That is why more financial institutions are looking at teller cash recyclers (TCRs). On the surface, they promise efficiency, security, and better customer service. TCRs give your team the capacity to serve more customers with less stress.
They reduce manual touches of money, meaning fewer trips to the vault and fewer errors at the end of the day. They cut down compliance risks by reducing cash handoffs. They lower training fatigue because new tellers do not have to master the most error-prone tasks. And they improve the customer experience by freeing tellers to focus on people instead of stacks of bills.
Still, the decision to invest in a TCR cannot be based only on features. The real test is in the financial case. Because when you’re responsible for the branch budget, you need more than promises. You need to understand the actual return on investment.
This guide will walk through how to calculate the ROI of a TCR, step by step, so you can see the numbers clearly and decide if the investment makes sense for your environment. Now, keep in mind what follows is based on averages, but you will still be able to get a good sense of what a TCR can do for your financial institution’s bottom line.
The math is straightforward once you know what to measure. These are the steps:
Start with transactions per month
Let’s assume a single full-time equivalent (FTE) can manually handle about 2,250 transactions per month.
Now, let’s calculate the recommended number of FTEs for your location using this formula: Total transactions ÷ 2,250 = Recommended FTEs.
Compare to your current staffing
Subtract the recommended FTEs from your current FTE count for your “FTE Save” number: Current FTEs - Recommended FTEs = FTE Save.
Round down to the nearest half FTE (for example, 6.25 becomes 6).
Factor in labor costs
Multiply your FTE Save by the average cost per FTE (salary plus benefits) to get your annual savings: FTE Save × Cost per FTE = Annual Savings.
If you do not have an exact number, assume $42,000 per year.
Subtract the cost of the TCR
The average annualized cost of a TCR is about $12,000, so let’s calculate what your overall ROI of a TCR will be using the following formula: Annual Savings - $12,000 = Estimated Annual ROI.
This framework gives you a clear view of the financial return before factoring in the softer benefits of morale, compliance, or customer experience.
The framework above works in most cases, but there are a few rules and limits to remember:
Branches cannot run below three FTEs. Even if the calculation shows that you could operate with fewer, every branch requires a minimum staffing level. The model always rounds up to three.
Turnover changes the equation. Most financial institutions see about 25% annual turnover. That means you may not reduce headcount directly, but you can avoid rehiring when someone leaves. The TCR takes on the workload instead of adding another salary.
ROI is not only financial. Even in branches where FTE reductions are limited, TCRs reduce vault transactions, free up staff time, and cut compliance risk. Those gains improve operations, reduce stress, and strengthen customer relationships.
Numbers become clearer when you see them applied to real situations. Here are two examples that show how the ROI calculation works in practice.
Branch has 4 FTEs.
Monthly transactions: 9,000.
Average FTE cost: $45,000.
Step 1: 9,000 ÷ 2,250 = 4 recommended FTEs.
Step 2: Current 4 – Recommended 4 = 0 FTE Save.
Step 3: 0 × $45,000 = $0 annual savings.
Step 4: $0 – $12,000 (TCR cost) = –$12,000 estimated ROI.
In this case, the branch does not realize a direct financial savings. However, when turnover happens, the TCR can absorb the gap and prevent the need to rehire, which changes the outcome over time.
Branch has 6 FTEs.
Monthly transactions: 9,000.
Average FTE cost: $45,000.
Step 1: 9,000 ÷ 2,250 = 4 recommended FTEs.
Step 2: Current 6 – Recommended 4 = 2 FTE Save.
Step 3: 2 × $45,000 = $90,000 annual savings.
Step 4: $90,000 – $12,000 (TCR cost) = $78,000 estimated ROI.
In this branch, the savings are direct and measurable, showing why ROI calculations matter when evaluating TCR investments.
The ROI of a teller cash recycler is more than a line on a budget. It is the combination of measurable financial savings and the operational benefits you see every day in the branch. The math shows where you can reduce costs or avoid new hires.
But the intangibles show how your team works with less stress, your compliance posture improves, and your customers feel more valued:
Staff stress reduction: Tellers no longer spend long hours counting, recounting, and balancing. Closing is faster, and employees leave on time instead of staying late to chase discrepancies.
Compliance strength: Every cash handoff is a compliance risk. By automating cash handling, TCRs reduce manual touches, limit vault trips, and create a full audit trail.
Customer experience: With less focus on bills, tellers can focus on people. That means eye contact, conversations, and stronger relationships. Customers notice when staff are present and not distracted.
Cultural shift: In many branches, teams go from resisting TCRs to embracing them as part of daily life. Some even give their machines names. That shift in attitude builds trust in the technology and makes the branch run smoother.
For many institutions, the decision to invest in a TCR comes down to this: the annual cost is about $12,000, but the return can be several times that amount in both hard dollars and long-term value.
If you are ready to see what the numbers look like for your own branches, we can walk through the calculation with you and talk about where a TCR makes sense in your network.