Calculator
Electrical Equipment ROI Calculator
Decide whether a truck, tool, machine, or software is worth buying — enter the purchase price, useful life, and the profit or savings it brings in each year to see your payback period, return on investment, and lifetime net benefit against electrical equipment benchmarks. Free, no signup.
Free
Setup, install & resale value
Total investment$70,000
Net cash flow / year$31,000
36.4%/yr ROI364.3% lifetime ROI
Payback period
2.3 yrs
≈ 27 months to recover your $70,000 investment
Fast payback — a strong buy
Lifetime net benefitOver 10 yrs, after the $70,000 outlay
$255,000Return at a glance
Payback period
2.3 yrs27 months · within its useful life
Net cash flow / year
$31,000$2,583/mo after operating cost
Lifetime ROI
364.3%Total return over 10 years
Annualized ROI (simple)
36.4%Lifetime ROI spread evenly per year
Annualized ROI (compounded)
16.6%CAGR — compares to an investment return rate
Break-even benefit / year
$14,500Least it must earn or save each year to not lose money
Cash flow by year
| Year | Cash flow | Cumulative |
|---|---|---|
| Year 1 | $31,000 | -$39,000 |
| Year 2 | $31,000 | -$8,000 |
| Year 3Paid back | $31,000 | $23,000 |
| Year 4 | $31,000 | $54,000 |
| Year 5 | $31,000 | $85,000 |
| Year 6 | $31,000 | $116,000 |
| Year 7 | $31,000 | $147,000 |
| Year 8 | $31,000 | $178,000 |
| Year 9 | $31,000 | $209,000 |
| Year 10 | $46,000 | $255,000 |
Cumulative cash flow turns positive in year 3. The final year includes $15,000 resale value.
Where the money goes
- Purchase price: $65,000
- Setup & install: $5,000
- Operating (10-yr): $90,000
Total cost of ownership over 10 years — purchase, setup, and operating cost combined. Resale value ($15,000) comes back at the end.
Industry benchmarks
- Insulated bucket truck
- $40k–$140k
- Thermal imaging camera
- $1k–$3k
- Strong payback
- Under 2.5 years
- Good annualized ROI
- Over 20%/yr
A big-ticket truck can run a longer payback — aim to recover it in under 2.5 years. Electrical equipment: 20%+/yr annualized ROI is a strong buy; under 8%/yr is weak.
What you'll get
Enter the purchase and its life
Add the price, one-time setup or install costs, how many years you will run it, and any resale or trade-in value at the end.
Add what it earns or saves
Enter the added profit or annual savings the equipment generates, minus what it costs to operate each year — fuel, maintenance, insurance, or subscription.
Read the payback and ROI
See the payback period in years and months, lifetime and annualized ROI, and a year-by-year cash-flow schedule that shows exactly when the purchase turns profitable.
How it works
- 1
Enter the purchase and its life
Add the price, one-time setup or install costs, how many years you will run it, and any resale or trade-in value at the end.
- 2
Add what it earns or saves
Enter the added profit or annual savings the equipment generates, minus what it costs to operate each year — fuel, maintenance, insurance, or subscription.
- 3
Read the payback and ROI
See the payback period in years and months, lifetime and annualized ROI, and a year-by-year cash-flow schedule that shows exactly when the purchase turns profitable.
How electrical contractors decide if equipment is worth buying
A new truck, jetter, or software subscription is only a good deal if the money it brings in beats what it costs to own and run. Return on investment and payback period are the two numbers lenders, accountants, and smart owners use to compare purchases: payback tells you how fast you get your cash back, ROI tells you how much you make over the equipment's life.
This calculator uses the standard capital-budgeting formulas — payback period (total investment ÷ net annual cash flow), lifetime ROI ((net benefit ÷ investment) × 100), and both simple and compounded (CAGR) annualized returns — so you can size up a electrical equipment purchase the same way a CFO would. Net annual cash flow subtracts operating cost from the benefit, and salvage value is credited at the end of the useful life. Pair it with the Break-Even and Profit Margin calculators to make sure the work the equipment brings in actually clears your overhead.
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View statesEquipment ROI Calculator FAQs
How do I calculate ROI on electrical equipment?
Take the total money the equipment returns over its life — added profit or savings each year, minus operating cost, plus any resale value — and subtract what you paid for it (price plus setup). Divide that net benefit by your total investment and multiply by 100. Example: a $20,000 machine that nets $8,000/year for 5 years returns ($40,000 − $20,000) ÷ $20,000 = 100% lifetime ROI, or about 20% per year.
What is the payback period and what is a good one?
Payback period is how long the equipment takes to earn back its cost: total investment ÷ net annual cash flow. A $15,000 tool that nets $10,000/year pays back in 1.5 years. For most contractor equipment, under 2 years is strong and anything past its useful life means it never really pays for itself.
Should I enter added revenue or cost savings for the annual benefit?
Either — whichever the purchase creates. Enter the added gross profit from new work the equipment lets you take on, OR the annual cost it eliminates (equipment rental, subcontractor markup, wasted hours). Use profit, not total revenue, so the payback and ROI reflect money you actually keep.
Is this electrical equipment ROI calculator free?
Yes. Every tool on CloseCrew is free for contractors — no account required. Use it with the Break-Even and Profit Margin calculators to check that the jobs your new equipment brings in clear your overhead and hit your target margin.
