Packaging Automation & End-of-Line Systems worked example

Palletizer Payback with palletizer installed project cost of 12,500 $: a worked example

This worked example runs the palletizer payback numbers for a tougher week than the baseline: palletizer installed project cost of 12,500 $ instead of the typical 25,000 $. Estimate the payback period for a robotic or conventional palletizer by weighing the installed cost against the labor and damage savings from automated palletizing.

The inputs for this scenario

  • Palletizer installed project cost: 12,500 $ (the input this scenario stresses; the baseline uses 25,000)
  • Annual labor and damage savings from palletizing: 18,000 $ / yr (held at the documented default)
  • Annual palletizer maintenance and support cost: 2,500 $ / yr (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Net annual palletizing savings = annual palletizing savings - annual palletizer support cost.
  • Palletizer payback period works out to 0.81 yr at these inputs, and this is the headline figure for the scenario.
  • Net annual palletizing savings works out to 15,500 $ / yr at these inputs.
  • Palletizer project cost works out to 12,500 $ at these inputs.
  • Five year net palletizer savings works out to 65,000 $ at these inputs.

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 50% below the baseline at 0.81 yr.
  • Use it when justifying a robotic or conventional palletizer over manual hand-stacking, or when comparing competing palletizer quotes. 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

  • Palletizer payback period: 0.81 yr (headline result)
  • Net annual palletizing savings: 15,500 $ / yr
  • Palletizer project cost: 12,500 $
  • Five year net palletizer savings: 65,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Palletizer Payback calculator, set palletizer installed project cost to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.