Return on Investment (ROI)
CALCULATOR
Use this Calculator to plan your automation project's success.
Estimated Equipment Cost *
 
Total Cost of equipment or project, remember to include:
  • Shipping/Delivery
  • Equipment
  • Installation
  • Startup/Debug
  • Everything required to get machine into production
 $
Annual Benefit *
 
How much will this equipment allow you to save/make per year? Be sure to include:
  • Labor Savings
  • Maintenance Savings
  • Reduced Scrap Rate
  • Increased Volume
  • Higher Quality
 $
Number of Years in Production *
 
How long will the automation produce your annual automation benefit?
yr
Annual Minimum Interest Rate *
 
If your company has a required rate of return on projects, enter it here. This is also referred to as a hurdle rate. This rate ranges from 8-15% for most companies.
%
 
Calculate
 
RESULTS
Net Present Value (NPV) *
 
This compares your initial investment to future benefits in today's dollars. If it's a negative number that means the initial investment is not justified by the future benefits. If you want to keep your job, come up with better numbers.
Payback, in years *
 
How long it takes in annual benefits to return the estimated equipment cost.
Internal Rate of Return (IRR) *
 
Interest rate where annual benefits are equal to estimated equipment cost in today's dollars.
For more project specific information call us at 801.621.4117 or fill out our contact form.
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