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Equipment ROI Calculator

Buying a machine, van, oven, or fit-out? Enter the price and the extra monthly profit it’ll generate — get payback months and annualised return instantly.
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Quick ROI Calculator

Rough baseline. The full modeler factors in running costs, tax & depreciation.

Horizon

Net gain (12 mo)

+£20,000

Payback

4.0 mo

Total ROI (indicative)

+200.0%

Annualised

+200.0%

Go deeperUnlock the full industry modeler

Why equipment ROI matters

Capital purchases lock up cash. A machine that pays back in 6 months is usually a clear yes; one that pays back in 30 months needs scrutiny on warranty, useful life and obsolescence.

Worked example — a £14,000 commercial oven

A bakery buys a £14,000 deck oven. It enables one extra production run per day, adding roughly £1,800 net profit per month after the oven’s own gas and consumables.

  • Payback: ~7.8 months
  • Total ROI (36 mo): +363%
  • Annualised: ~67% per year

Common mistakes

  • Counting gross revenue instead of net profit
  • Ignoring finance interest when leasing
  • Forgetting installation, training and delivery in the spend
  • Using an unrealistic useful life

Frequently asked questions

What counts as ‘monthly return’ for equipment?⌄

It’s the extra net profit the kit unlocks each month — additional revenue minus the running costs the machine itself adds (consumables, energy, maintenance). Don’t double-count existing overhead.

Should I include finance or lease costs?⌄

If you pay cash, use the full price as the initial spend. If you lease or finance, model the total monthly outflow as a reduction to your monthly return and put £0 as the initial spend.

What about depreciation and tax relief?⌄

The quick calculator ignores both for speed. UK Annual Investment Allowance can recover up to 100% of qualifying plant in year one — use the full industry modeler when that matters to the decision.

How long should the horizon be?⌄

Match it to the expected useful life. Workshop machinery 36 months is standard; van or kitchen equipment 24; tech/POS 12. ROIify’s annualised figure makes the choice fair.

Go deeperOpen the full industry modeler