Manufacturing Project Portfolio & Capex worked example

Capex ROI with equipment and capex investment of 62,500 $: a worked example

Push equipment and capex investment up to 62,500 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when capex roi in manufacturing project portfolio and capex is being compared against another manufacturing project portfolio and capex project for the same budget.

The inputs for this scenario

  • Equipment / capex investment: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual savings from the capex: 18,000 $ / yr (unchanged)
  • Annual maintenance & support cost: 2,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual capex roi savings = annual capex roi savings - annual capex roi support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.03 yr for capex roi payback period, the number this scenario is built around.
  • At this operating point the engine returns 15,500 $ / yr for net annual capex roi savings.
  • At this operating point the engine returns 62,500 $ for capex roi investment.
  • At this operating point the engine returns 15,000 $ for five-year net capex roi value.

How this compares with the baseline

  • Against the tool's baseline example, where equipment and capex investment sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • It computes the simple payback period in years by dividing the capital investment by net annual savings (gross savings minus annual support cost). The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Capex roi payback period: 4.03 yr (headline result)
  • Net annual capex roi savings: 15,500 $ / yr
  • Capex roi investment: 62,500 $
  • Five-year net capex roi value: 15,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.