Laundry Equipment ROI Calculator
Payback period and ROI for laundry equipment investment.
About this calculator
Buying commercial laundry equipment — a washer-extractor, a dryer, a folder — is a capital decision, and this calculator reduces it to the two numbers that actually matter: how long until the machine pays for itself, and what it returns after that. Monthly profit is simply revenue the machine generates minus its monthly utilities and maintenance costs; payback period is the equipment cost divided by that monthly profit, rounded up to a whole month, since you don't recover a partial month's worth of investment mid-cycle. Lifetime profit takes annual profit (monthly profit times 12), multiplies it by the equipment's expected useful life in years, and subtracts the original equipment cost — that's the net dollar return over the machine's full working life, and total ROI expresses that lifetime profit as a percentage of the original investment. Annual ROI simply divides the total ROI by useful-life years for a rough annualized comparison figure, which is a straight-line simplification rather than a true compounded or discounted return.
What this calculator deliberately leaves out matters for how you read the result: there's no discounting for the time value of money, no financing cost if the equipment is loan-purchased, and no allowance for cash flow if maintenance costs rise as the machine ages rather than staying flat as assumed here. It also treats monthly revenue, utilities, and maintenance as constants across the entire useful life, when in practice utility rates typically climb and maintenance costs tend to increase as equipment approaches end of life. Use it to compare candidate machines or vendors against each other on a like-for-like basis rather than treating the lifetime profit figure as a guaranteed outcome.
Inputs
Results
Payback (months)
24
How to Use This Calculator
- Enter the equipment cost, including purchase and installation.
- Input the expected monthly revenue the machine will generate.
- Enter the monthly utilities cost and monthly maintenance cost.
- Set the equipment's expected useful life in years.
- Review the payback period in months, annual profit, lifetime profit, and total and annualized ROI.
How the result changes with Monthly revenue ($)
| Monthly revenue ($) | Payback (months) |
|---|---|
| 400 | 66 |
| 600 | 35 |
| 1,200 | 15 |
| 2,000 | 9 |
What each input means
- Equipment cost ($)
- Purchase and installation cost.
- Monthly revenue ($)
- Expected monthly revenue from this machine.
- Monthly utilities ($)
- Monthly water, gas, and electricity cost.
- Monthly maintenance ($)
- Average monthly maintenance and repair cost.
- Useful life (years)
- Expected machine lifespan.
What each result means
- Payback (months)
- Months to recover the equipment investment.
- Annual profit ($)
- Net annual profit from the equipment.
- Lifetime profit ($)
- Total profit over useful life minus equipment cost.
- Total ROI (%)
- Return on investment over useful life.
- Annual ROI (%)
- Annualized return on investment.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersEquipment cost ($) = 15000, Monthly revenue ($) = 800, Monthly utilities ($) = 120, Monthly maintenance ($) = 50 = 5 input(s) provided
- Calculate PaybackPayback24 = 24
- Calculate Annual profitAnnual profit = monthlyProfit * 127560 = $7,560
- Calculate Lifetime profitLifetime profit = annualProfit * usefulLifeYears - equipmentCost60600 = $60,600
Engine last updated . Checked against 3 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.
Frequently Asked Questions
How is the payback period calculated?
Payback in months is the equipment cost divided by monthly profit (monthly revenue minus monthly utilities minus monthly maintenance), rounded up to the next whole month. It's rounded up rather than down because you don't recover a partial month's worth of investment mid-cycle — if the math works out to 14.2 months, the calculator reports 15.
Why is annual ROI just total ROI divided by useful-life years?
That's a straight-line simplification, not a compounded or time-value-adjusted return: total ROI (lifetime profit as a percentage of equipment cost) is divided evenly across the useful-life years to give a rough annualized comparison figure. It's useful for comparing candidate machines side by side, but it isn't the same as an internal rate of return or a discounted cash flow calculation.
What isn't factored into the lifetime profit figure?
The calculator holds monthly revenue, utilities, and maintenance constant across the entire useful life — it doesn't account for utility rates climbing, maintenance costs rising as the machine ages, financing costs if the equipment is loan-purchased, or the time value of money. Treat the lifetime profit and ROI figures as a like-for-like comparison tool between machines or vendors, not a guaranteed outcome.
What happens if monthly profit is zero or negative?
If monthly revenue doesn't exceed utilities plus maintenance, monthly profit is zero or negative and the calculator reports a payback period of 0 rather than a meaningless infinite or negative number, since the equipment would never pay for itself under those inputs. In that case lifetime profit and ROI will also come out negative, correctly signaling a losing investment.
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