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Packaging Automation Simple Payback Calculator

Estimate simple payback from current versus automated annual direct labor cost, annual maintenance/service cost after automation, and installed investment. All annual costs must use the same operating scope and price basis. Formula: net annual savings = current labor cost - automated labor cost - post-automation maintenance; simple payback months = installed cost / positive net annual savings × 12. If net annual savings are zero or negative, no finite simple payback is reported. This is undiscounted arithmetic, not IRR or a full investment appraisal; excludes taxes, financing, depreciation, capacity revenue, and other cash flows.

Example values are prefilled to demonstrate the calculation. Replace them with values for your product, package, equipment, and operating conditions.

Inputs

Labor, maintenance, and investment

Range: at least 0 USD/year

Enter current annual direct packaging labor cost for the same line, shifts, production volume, and wage basis used in the automated scenario.

Range: at least 0 USD/year

Enter expected annual direct labor cost after automation on the same scope and wage basis as current cost.

Range: at least 0 USD/year

Enter expected annual maintenance and service cost after automation for the same equipment scope.

Range: at least 0 USD

Include equipment, integration, and installation costs you want in the payback denominator. Use the same currency basis as annual costs.

Result

Valid
Annual savings status
Positive annual savings
Annual simple savings / investment (undiscounted)
0.38
Net annual savings after maintenance (USD/year)
$190,000.00
Simple payback period when savings are positive (months)
31.58 months

Calculation

Net annual savings after maintenance (USD/year)
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Simple payback period when savings are positive (months)
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Annual simple savings / investment (undiscounted)
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