Costing worked example
Manufacturing ROI with investment cost of 212,500 $: a worked example
What does the result look like when investment cost reaches 212,500 $? The full calculation is worked below with real intermediate numbers. Use before buying equipment, fixtures, tooling, or automation.
The inputs for this scenario
- Investment cost: 212,500 $ (raised for this scenario; the documented default is 85,000)
- Annual labor savings: 42,000 $ / yr (unchanged)
- Annual scrap savings: 12,000 $ / yr (unchanged)
- Annual throughput benefit: 18,000 $ / yr (unchanged)
- Annual energy savings: 3,500 $ / yr (unchanged)
- Added annual maintenance: 6,500 $ / yr (unchanged)
Working through the calculation
- Applying the documented formula (Annual net savings = savings − added maintenance) to the inputs above produces each figure below.
- At this operating point the engine returns 32.47 % for roi, the number this scenario is built around.
- At this operating point the engine returns 69,000 $ / yr for annual net savings.
- At this operating point the engine returns 3.08 years for payback period.
- At this operating point the engine returns 132,500 $ for five-year net benefit.
How this compares with the baseline
- Against the tool's baseline example, where investment cost sits at 85,000 $ and the headline result is 81.18 %, this scenario comes in 60% below the baseline at 32.47 %.
- A figure at this level is achievable when investment cost is genuinely sustained, not just peaked for a shift. It is a simple first-year ROI that ignores the time value of money, ramp-up before full savings, inflation, and salvage value; for large multi-year cases pair it with NPV or IRR.
Results at a glance
- ROI: 32.47 % (headline result)
- Annual net savings: 69,000 $ / yr
- Payback period: 3.08 years
- Five-year net benefit: 132,500 $
Run it with your numbers
- Every input above is editable in the live Manufacturing ROI calculator, which recalculates instantly and can be shared with the inputs intact.
Last reviewed 2026-05-12.