Manufacturing & Lean

ROI & Payback Calculator

Calculate return on investment and simple payback for capital projects.

Inputs
Result
Annual ROI
45%
Simple payback
2.22years
Formula
ROI = (Annual savings − Annual cost) / Investment × 100
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Formula

ROI = (Annual savings − Annual cost) / Investment × 100

Worked example

(50,000 − 5,000) / 100,000 = 45% ROI; payback 2.2 yr

FAQ

+What's a good payback?

Industrial efficiency projects often target ≤ 3 years.

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