Production worked example

Preventive Maintenance ROI at 40% expected downtime reduction: a worked example

What does the result look like when expected downtime reduction reaches 40%? The full calculation is worked below with real intermediate numbers. Use to justify PM labor, parts, inspections, condition monitoring, or reliability projects.

The inputs for this scenario

  • Current annual downtime: 180 hr / yr (unchanged)
  • Expected downtime reduction: 40 % (raised for this scenario; the documented default is 35)
  • Downtime cost: 920 $ / hr (unchanged)
  • Annual PM cost: 28,000 $ / yr (unchanged)
  • Implementation cost: 16,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Avoided downtime = current downtime × expected reduction) to the inputs above produces each figure below.
  • At this operating point the engine returns 239 % for pm roi, the number this scenario is built around.
  • At this operating point the engine returns 38,240 $ / yr for annual net savings.
  • At this operating point the engine returns 72 hr / yr for avoided downtime.
  • At this operating point the engine returns 0.42 years for payback period.

How this compares with the baseline

  • Against the tool's baseline example, where expected downtime reduction sits at 35% and the headline result is 187 %, this scenario comes in 27.64% above the baseline at 239 %.
  • A figure at this level is achievable when expected downtime reduction is genuinely sustained, not just peaked for a shift. ROI here divides recurring annual net savings by a one-time implementation cost, so values above 100% are normal. The model assumes the entered downtime reduction is realized; it does not model ramp-up, training time, spares lead time, or implementation risk, and the result is only as good as the downtime-cost-per-hour basis you enter.

Results at a glance

  • PM ROI: 239 % (headline result)
  • Annual net savings: 38,240 $ / yr
  • Avoided downtime: 72 hr / yr
  • Payback period: 0.42 years

Run it with your numbers

  • Every input above is editable in the live Preventive Maintenance ROI calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.