ROI Payback Chart

Use this worksheet after the calculator result to record investment cost, annual benefit, operating cost, simple payback, ROI percent, cash-flow assumptions, and sensitivity notes.

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Quick reference table

An ROI payback chart is a calculator-led planning worksheet. It keeps cost, benefit, payback, and cash-flow assumptions visible before a project is compared or approved.

ROI payback worksheet

ROI payback worksheet
Item	Record from calculator	Follow-up
Investment	Initial cost and net cost basis	Verify scope and exclusions
Benefit	Annual savings or revenue	Separate measured and assumed values
Metrics	ROI percent and payback	Compare with project threshold
Sensitivity	Rate, runtime, life, maintenance	Run best and conservative cases

ROI decision review lanes

ROI decision review lanes
Decision lane	Record on worksheet	Why it changes the comparison
Cash-flow timing	Upfront cost, recurring benefit, start month	Payback changes when savings start later than spending
Discount or hurdle basis	Discount rate, target ROI, owner threshold	Projects should be compared against the same decision rule
Maintenance and salvage	O&M change, replacement value, residual value	Lifecycle items can change the net benefit
Risk case	Conservative, expected, upside inputs	One ROI result hides sensitivity to assumptions

Formula basis

ROI percent = net benefit / investment cost x 100.

Investment cost is the project cost basis used by the calculator.
Net benefit is the annual or lifetime benefit after operating costs as entered.
Simple payback is cost divided by recurring annual benefit.
Sensitivity notes identify drivers such as rate, hours, project life, and maintenance.

Worked examples

Efficiency project ROI recordRecord project cost, annual savings, maintenance change, simple payback, ROI percent, project life, and assumptions that need finance review.

Tooling investment comparisonKeep purchase cost, labor savings, maintenance cost, project life, salvage value, discount note, payback, and approval threshold in one decision record.

Assumptions. Balanced load and line-to-line voltage assumptions behind this chart.

ROI depends on cost basis, benefit timing, operating conditions, finance assumptions, and project life.
The worksheet supports comparison and does not provide investment, accounting, or tax advice.

Code and standard notes. Planning limits that should be checked before final equipment selection.

Use this chart as a comparison worksheet; verify project scope, utility and operating assumptions, maintenance inputs, owner hurdle rates, finance review, and program requirements before approval.

How to use this chart

1Record cost and benefitWrite investment cost, annual benefit, operating cost, and period basis.

2Attach assumptionsDocument project life, escalation, maintenance, financing, and sensitivity drivers.

3Route approvalUse the chart to compare projects and assign finance or owner review.

Worksheet checklist. Record source basis, review gaps, and assumptions before using the chart result.

Capture inputsRecord cost, savings, revenue, operating cost, life, and discount or hurdle assumptions.
Capture metricsWrite simple payback, ROI percent, net benefit, and cash-flow notes.
Capture decisionList approval threshold, reviewer, sensitivity cases, and open risks.

Common mistakes to avoid. Review these before turning chart current into an equipment decision.

Comparing ROI values that use different cost or time bases.
Presenting payback without noting project life and maintenance assumptions.
Ignoring cash-flow timing, discount basis, salvage value, or risk case when comparing projects.

Frequently asked questions

These answers explain how to use the chart without turning a quick reference into a final design decision.

Why keep payback and ROI together?

Payback shows recovery time, while ROI shows return relative to cost. Both need the same cost and benefit basis.

What should be checked before approval?

Review cost scope, benefit evidence, operating assumptions, project life, maintenance, financing, and risk.