What this calculator does
This calculator estimates simple payback by dividing installed investment by annual net benefit. Net benefit combines evidenced labour, waste and capacity contribution and subtracts additional maintenance, software and ownership cost. It does not replace a full cash-flow or risk model.
Enter your figures and select calculate.
Planning estimate: Annual net benefit = labour saving + waste saving + evidenced capacity contribution − added annual operating cost. Simple payback months = installed investment ÷ annual net benefit × 12.
Use the complete installed investment
Include equipment, tooling, integration, delivery, installation, site work, training, validation and initial spares.
- Use approved quoted scope
- Add internal project and site costs
- Separate recoverable tax where appropriate
Use evidenced annual benefit
Count labour that can genuinely be removed or redeployed, measured waste reduction and capacity that has a realistic market contribution.
- Avoid counting the same labour twice
- Use good packs and actual production days
- Separate certain and potential benefits
Stress-test the result
Run low, expected and high cases for demand, ramp-up, efficiency and support cost. Simple payback ignores timing and financing, so use a fuller financial appraisal for major investments.
- Model delayed ramp-up
- Include added maintenance and licences
- Review actual benefit after commissioning