ROI / Payback Calculator | CWX Workflow Tools
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ROI / Payback Calculator

Will it pay for itself, and when.

Every purchase competes for the same cash. This tool turns a cost and the gain it brings into a payback period and a return, so a new machine, hire, or system is judged on what it earns back rather than on how much you want it.

Time3 min
FormatCalculator
SavesPDF · JSON record
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What it is

A quick read on whether an investment is worth it: how long until it pays for itself, and what it returns over its life.

When to use it

Before buying a machine, hiring, or adopting software. A short payback and a strong return turn a gut call into a defensible one.

How to run it

Enter what it costs, the gain or saving it brings each year, and how long you will run it. The tool returns payback and ROI.

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Payback period
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ROI over horizon
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Net profit
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Annual ROI

Payback = investment / annual gain. Net = annual gain x years - investment. ROI = net / investment. This is a simple model and ignores the time value of money.

Saved

Worked example: a new cutter

The cutter costs $12,000 and saves about $6,000 a year in outsourced finishing and faster turnaround. It pays for itself in 2 years. Over a 5-year life it returns $30,000 of gain for a net of $18,000, a 150% return, or 50% a year. That is an easy yes.