Every equipment vendor has a slide about payback period. This calculator lets you check it against your own numbers: equipment cost, expected monthly savings or added profit, and useful life, and it gives you the payback period and lifetime ROI without the vendor's assumptions baked in.
Payback period in months = equipment cost divided by additional monthly profit or savings.
| Equipment cost (incl. installation) | 250000 ₹ |
| Additional monthly profit / savings | 20000 ₹ |
| Useful life of equipment | 5 years |
Any measurable monthly benefit, lower gas or electricity bills, reduced labor hours, less food waste from better storage, or additional revenue the equipment enables. Be conservative here, optimistic estimates are how ROI calculations go wrong.
Most operators want payback within 12-24 months for smaller equipment, and are willing to stretch to 36 months for larger capital items like a full kitchen refit, since useful life extends well beyond that.
This calculator compares cost against savings either way, but if you finance it, run the Business Loan / EMI Calculator alongside this one, the EMI needs to be smaller than the monthly savings for the purchase to make sense on financed terms.
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