Tools
Payback Period & ROI Calculator
See how quickly an equipment or software investment pays for itself, and what it returns over its useful life. Your numbers stay in your browser.
Payback period
0 years
Lifetime ROI
0%
Total net over life
$0
How this is calculated
These are simple, undiscounted figures, the kind you use for a quick go or no-go read. Every input is yours; nothing here is a promise or a benchmark.
Payback period (years) = initial investment ÷ annual net savings
Total net over life = (annual net savings × project life) − initial investment
Lifetime ROI % = total net over life ÷ initial investment × 100
Annualized ROI % = lifetime ROI % ÷ project life
Annualized ROI % = lifetime ROI % ÷ project life
What this deliberately leaves out
- The time value of money. This is a simple payback and simple ROI. It does not discount future cash flows, so it flatters longer projects. For a capital decision, also run NPV or IRR at your cost of capital.
- Uneven cash flows. The model assumes the same net savings every year. If savings ramp up or taper off, payback moves.
- Risk and downtime. Maintenance, adoption time, and obsolescence can all reduce the annual figure you enter. Use a number you can defend.
To build the annual savings figure from recovered uptime and reduced paperwork, use the manufacturing ROI calculator. To size the downtime you might recover, see the downtime cost calculator and the machine downtime guide.
Make the annual savings real
Harmony connects your machines, systems, and paperwork into one real-time operational layer, no rip-and-replace, so the savings behind your payback are measured, not guessed. Read the CLS case study.
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