How to calculate the payback period of the equipment

To start, determine the amount that the company is ready to allocate for the purchase of new equipment. It will engage directly the cost of acquisition, and costs associated with installation and commissioning. For example, if you plan to acquire an additional pipeline, which will allow to redistribute the workload, the parameter "Capital investments" calculate the price of the device, the amount of delivery, the cost of installation and start-up. However, if all the preparations was carried out by a staff member of the company, and therefore the organization was able to avoid additional costs, over and above the purchase cost to add nothing.

Calculate the amount of gross income derived from the use of equipment. For example, if a new furnace in a month is to bake 500 loaves of bread and sold at a price of 20 p per unit of product, and raw material costs from the calculation of a loaf will be 5 R, then gross profit will be equal to R 7500 (7500 = (20 R – 5 R) * 500). While the costs of the salary Fund are not taken into account, but if the service equipment is employed additional staff, payments for newly hired employees need to be considered. Tax deductions should be ignored – they will in any case depend on the total amount of income. Thus, gross income is the difference between the sales price and production costs in trade – the amount of allowances.

Put the indicators in the formula:T = K / VD, where T is the period of return; – capital expenditures; VD – gross income.When calculating the period of payback can take any length of time. If you select quarter, the amount of gross income is also taken per 3 calendar months.

Instead of yield, you can substitute the value of saving, which will become possible after the introduction of additional units of equipment, because according to popular wisdom, "Saved – then earned".