Manufacturing Project Portfolio & Capex worked example

Project Payback with project investment and implementation cost of 62,500 $: a worked example

What does the result look like when project investment and implementation cost reaches 62,500 $? The full calculation is worked below with real intermediate numbers. Use it when project payback in manufacturing project portfolio and capex is being put in front of a capital committee and the savings story needs to hold up.

The inputs for this scenario

  • Project investment / implementation cost: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual savings delivered by the project: 18,000 $ / yr (unchanged)
  • Annual run / support cost: 2,500 $ / yr (unchanged)

Working through the calculation

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

How this compares with the baseline

  • Against the tool's baseline example, where project investment and implementation cost sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • A figure at this level is achievable when project investment and implementation cost is genuinely sustained, not just peaked for a shift. It ignores discounting, benefit ramp-up, and the risk that projected savings never fully materialize, so verify the savings estimate before trusting the payback.

Results at a glance

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

Run it with your numbers

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

Last reviewed 2026-05-12.