Calculating the ROI of Adding Simulcast to Your Auction
October 13, 2026
Quick Summary: The ROI of simulcast auction technology comes from one main source: extra units sold because more bidders are competing for each vehicle. To calculate it, multiply your added sold units by your combined buy and sell fees, add any cost savings, subtract your annual simulcast cost, and divide by that cost. Most auctions should also calculate a break-even point: how many extra units per sale simulcast needs to sell to pay for itself.
Online bidders are no longer a side channel. According to the NAAA 2023 Industry Survey, half of the vehicles sold in simulcast sales at member auctions were bought by online bidders, and half in the lane. For an independent auction, the question isn't whether remote buyers matter. It's whether adding simulcast will earn back what it costs at your volume. Here's how to work out the ROI of simulcast auction technology with your own numbers.
The Simulcast ROI Formula
Simulcast ROI (%) = (Added fee revenue + Cost savings − Annual simulcast cost) ÷ Annual simulcast cost × 100
Added fee revenue is the number of extra vehicles sold because of simulcast, multiplied by the fees you earn on each sold unit. Annual simulcast cost is everything you spend to run it for a year.
What Counts as Return
Revenue gains
- Higher sell-through: more bidders on each vehicle means fewer no-sales
- Stronger prices: an online underbidder pushes the final bid up, which keeps consignors happy and raises fee revenue where fees are tiered by price
- More consignments: consignors send units where the buyers are
Cost savings
- Fewer re-runs: every no-sale that comes back next week costs lane time, lot space, and handling
- Wider reach without more floor space: online buyers don't need parking, seating, or a check-in desk
What Counts as Cost
- Software licensing or subscription fees
- Cameras, audio, and a reliable high-speed internet connection in each lane
- An internet clerk or staff time to manage online bids
- Training for auctioneers and clerks
A Worked Example
The figures below are illustrative, not benchmarks. Replace each one with your own.
| Input | Example value |
|---|---|
| Units run per weekly sale | 150 |
| Sales per year | 52 |
| Sell-through before simulcast | 60% |
| Sell-through after simulcast | 65% |
| Combined buy and sell fees per sold unit | $400 |
| Annual simulcast cost (software, cameras, staff time) | $60,000 |
Step 1: Find the Added Sold Units
150 units × a 5-point sell-through increase = 7.5 extra units per sale, or 390 extra units per year.
Step 2: Convert Them to Fee Revenue
390 units × $400 = $156,000 in added fee revenue per year.
Step 3: Subtract the Cost
$156,000 − $60,000 = $96,000 net gain.
Step 4: Calculate ROI, Payback, and Break-Even
$96,000 ÷ $60,000 = 160% ROI. Monthly added revenue of $13,000 pays back the $60,000 cost in about 4.6 months. To break even, you'd need just 150 extra sold units a year, or about 3 per weekly sale.
How to Measure Your Real Lift
To find the real ROI of simulcast auction technology at your auction, track the same metrics for 8 to 12 sales before and after going live:
- Sell-through rate and no-sale count
- Unique bidders per sale, in-lane and online
- Average sale price against floor
- Active consignors and units consigned
Be careful not to count every online purchase as new revenue. Some of those buyers would have shown up in the lane anyway. The real return is the incremental sales and price lift, which is why the before-and-after comparison matters.
Frequently Asked Questions
How long does simulcast take to pay for itself?
It depends on your volume and fees. Divide your annual simulcast cost by your fees per sold unit to find how many extra sales you need. For many auctions, that's only a few units per sale.
Does simulcast replace in-lane buyers?
No. It adds to them. In NAAA's 2023 survey, vehicles in simulcast sales were split evenly between online and in-lane buyers.
What sell-through increase should we expect?
It varies by inventory, buyer base, and how well you promote the online lane. Measure your own lift over several sales instead of relying on a vendor's average.
What do we need to run a simulcast sale?
Cameras and audio in each lane, a dependable internet connection, simulcast software connected to your auction system, and someone to manage online bids.
Put Simulcast to Work in Your Lanes
The ROI of simulcast auction technology is highest when online and in-lane bids run through one system. Auction Streaming's SimCasts™ simulcast software shows every in-lane and online bid in a single bid history, supports hybrid or fully online sales, streams live video and audio, and works on any device. It also connects directly to the CAMS3™ Cloud Auction Management System, so sales flow straight into settlement.
See how SimCasts™ expands your auction's buyer reach, or contact our team to run the numbers for your lanes.