Packaging Automation & End-of-Line Systems worked example

Palletizer Payback with palletizer installed project cost of 62,500 $: a worked example

What does the result look like when palletizer installed project cost reaches 62,500 $? The full calculation is worked below with real intermediate numbers. Use it when a palletizer is being justified against continued manual stacking and you need a payback the capital committee can trust.

The inputs for this scenario

  • Palletizer installed project cost: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual labor and damage savings from palletizing: 18,000 $ / yr (unchanged)
  • Annual palletizer maintenance and support cost: 2,500 $ / yr (unchanged)

Working through the calculation

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

How this compares with the baseline

  • Against the tool's baseline example, where palletizer installed project 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 palletizer installed project cost is genuinely sustained, not just peaked for a shift. It treats savings and support as flat and ignores inflation, throughput growth, and discounting, so use it to screen projects rather than as a final NPV decision.

Results at a glance

  • Palletizer payback period: 4.03 yr (headline result)
  • Net annual palletizing savings: 15,500 $ / yr
  • Palletizer project cost: 62,500 $
  • Five year net palletizer savings: 15,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.