ROI and Payback Period Calculator

Check how quickly an investment such as new equipment, automation or a monitoring system pays for itself, and its return over a few years.

Net monthly benefit
Payback period
Net gain over horizon
ROI over horizon

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How it works

Payback period is the upfront cost divided by the net monthly benefit: the extra profit or savings after running costs such as subscriptions, maintenance or data plans.

ROI over a horizon compares the total net benefit with the investment. This simple version doesn't discount future savings; for long horizons or large projects, add a net present value calculation.

Net monthly benefit = monthly savings − monthly running cost
Payback (months) = investment / net monthly benefit
ROI = (net benefit × months − investment) / investment

Worked example

A ₹3,00,000 machine-monitoring system that saves ₹27,000 a month in lost production, with ₹2,000 a month of running costs, nets ₹25,000 a month. It pays back in 12 months, and over 3 years returns (25,000 × 36 − 3,00,000) / 3,00,000 = 200%.

Frequently asked questions

What counts as savings for an IoT or automation project?

Recovered production hours, avoided breakdowns and emergency repairs, less scrap, lower energy use and reduced manual data entry. Use conservative, measured numbers where you can.

What's a good payback period?

It depends on the business, but many manufacturers look for projects that pay back within one to three years.

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