A partial budget tool was developed to compare a producer’s present milking system with an automatic milking system (AMS). One AMS can handle an estimated 55 to 65 milking cows or approximately a 72-cow herd. The milk price projected over the life of the AMS is an important variable as is the estimated cost per AMS and the expected years of useful life of the AMS, often ranging 10 to 15 years. The value of AMS after its useful life is not well defined at this time but an important consideration. Labor cost and availability tends to be the leading reason for adopting AMS. Current hours of milking needs to be compared with the anticipated hours of milking labor after the AMS is installed. The AMS herd management software often includes rumination, milk conductivity, and cow activity. This information can lead to labor and herd health savings from heat and mastitis detection and faster identification of sick cows. There will likely be an increase in records management with the AMS. In adopting AMS, producers may experience losses in milk production 6 to 9% from 3× milking. From 2× milking, one could confidently expect a 3 to 5% increase in milk production. However, this milk production response varies widely, depending on present system and has increased as high as 25% on certain herds. Somatic cell counts (SCC) and bacteria counts tend to increase in the first few months after adoption to the AMS but tend to drop to initial levels or even lower after the adoption period. Feed costs per pound of dry matter and feed intake level changes can also be significant. Use of pelleted feeds and more individually fed cows will alter feed costs. Most producers report little change in culling percent but reasons for culling may change. High repair costs tend to be the biggest concern of AMS owners. AMS systems may increase electrical and water usage along with chemical and supply costs. Teat dip costs have been reported to increase dramatically but dependent on the previous system used. Overall, AMS can be an economic improvement in many herds relative to present milking systems but not true for all who have adopted AMS technology.