Production worked example

Preventive Maintenance ROI at 25% expected downtime reduction: a worked example

This worked example runs the preventive maintenance roi numbers for a tougher week than the baseline: 25% expected downtime reduction instead of the typical 35%. Estimate savings and ROI from reducing downtime with preventive maintenance improvements.

The inputs for this scenario

  • Current annual downtime: 180 hr / yr (held at the documented default)
  • Expected downtime reduction: 25 % (the input this scenario stresses; the baseline uses 35)
  • Downtime cost: 920 $ / hr (held at the documented default)
  • Annual PM cost: 28,000 $ / yr (held at the documented default)
  • Implementation cost: 16,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Avoided downtime = current downtime × expected reduction.
  • PM ROI works out to 83.75 % at these inputs, and this is the headline figure for the scenario.
  • Annual net savings works out to 13,400 $ / yr at these inputs.
  • Avoided downtime works out to 45 hr / yr at these inputs.
  • Payback period works out to 1.19 years at these inputs.

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 55.27% below the baseline at 83.75 %.
  • Use it when building the business case for PM labor, inspection plans, spare-parts programs, or condition-monitoring (PdM) projects, and when comparing a predictive program against a calendar-based one. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • PM ROI: 83.75 % (headline result)
  • Annual net savings: 13,400 $ / yr
  • Avoided downtime: 45 hr / yr
  • Payback period: 1.19 years

Run it with your numbers

  • To rerun this with your own numbers, open the live Preventive Maintenance ROI calculator, set expected downtime reduction to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.