Equipment ROI Calculator

About this calculator

Buying new equipment — a machine, a vehicle, software licenses — is a capital decision that should pay for itself through the savings or extra revenue it generates. Payback period is the simplest measure: how many years of net gain it takes to recover the purchase cost. Annual ROI goes further, expressing the yearly net gain as a percentage of what was spent, which makes it comparable across equipment of different prices.

This calculator takes the equipment's purchase cost and the annual net gain (added revenue or cost savings) it produces, and returns both the payback period and the annual ROI. Manufacturing managers, small-business owners, and finance teams use this pair of numbers to decide between competing equipment purchases or to justify a capital expenditure to stakeholders before committing budget to it.