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When is the full cost paid back?

This compares the cash you would stop spending against the full cost of the job: what you pay once, the value of your own team’s time, and what it costs each month to keep running. Enter only cash that stops going out.

Every formula is on the page. Nothing you type leaves this browser.

Nothing entered yet. It starts blank on purpose. Example numbers are illustrative, not Corridor prices, quotes or results.

$/month

Only money that stops going out: overtime, temporary staff, an outside service, or a hire you no longer need. Time your team moves to other work is not cash.

$

What you pay to have it built and installed.

$

Hours your people spend on setup, testing and training, at their loaded rate. It is not a new bill, but it is part of the cost.

$

Leave blank if you lease or need none. Lease payments go in the monthly running cost.

$/month

Everything paid each month to keep it running: lease, support, software and model fees.

months

Time to build, test and adjust. Running costs count from month one.

months

Whole months, 1 to 120.

Result

Waiting for the cash you would stop spending

Enter the cash you would stop spending each month. Leave it at 0 if the released time will go to other work.

No ROI percentage. When little is spent up front, a percentage looks huge and says little. Months to pay back and the net benefit at a date are easier to check.

How it is worked out

  1. Up-front costbuild and setup + your team’s setup time + hardware bought
  2. Net benefit a monthcash you stop spending − monthly running cost
  3. Net benefit after costs at month m− up-front cost − running cost × m + cash you stop spending × (m − ramp months, not below 0)
  4. Months to pay backramp months + (up-front cost + running cost × ramp months) ÷ net benefit a month, only when net benefit a month is above 0
  5. Break-even cash a month by month H(up-front cost + running cost × H) ÷ (H − ramp months)

Blank costs count as 0. The running cost is paid from month one, including the ramp. Your team’s setup time is counted at its value even though it is not a new bill. Figures are not discounted for the time value of money.

What this leaves out

  • It gives planning numbers. They are not a quote, a forecast or a promise of results. We have not yet measured results for manufacturing clients.
  • Savings are rarely even. The tool assumes the same figures every month once the ramp is over. Real months vary.
  • Net benefit is not a cash forecast. The tool counts your team’s setup time at its value, so it is stricter than a cash-flow view of the same job.
  • No discounting. Money later is treated the same as money now. For a capital decision, your finance team may also want a discounted view.
  • Other effects are left out. Fewer errors, faster answers to customers and less stress on the person doing the job can matter, but they are not counted unless you can name the cash they save.

Bring your numbers to a fit call.

We will check them with you and say plainly if the job is not worth building.

Twenty minutes, free. Your numbers stay with you unless you choose to share them.