A business case stands or falls on the numbers that go into it. This calculator makes the sum visible, so you can defend it with your own figures and not with someone else’s.
Calculate your payback period
- Saving per year (counted)€31,750
- Net per year, after running costs€31,750
- Return over three years138%
Calculated with 50% of the saving. Enter your own baseline for a sharper picture.
How the calculator works
- Downtime = production hours × OEE gain × contribution margin per hour
- Scrap = cost of scrap × percentage less scrap
- Energy = energy costs × percentage less energy
- Net saving = (downtime + scrap + energy) × “count” − running costs
- Payback period = investment ÷ net saving × 12 months
- Return over three years = (3 × net saving − investment) ÷ investment
Why the calculator counts half
By default the calculator counts 50% of the saving. An estimate made in advance is almost always too rosy, and a case that only works if everything goes right will not get past management. If the sum works with half, you have a strong story. Set the field to 100% when you are working with measured figures.
Which numbers to enter
- Contribution margin per hour: revenue minus variable costs, divided by the production hours. Calculating with revenue makes the saving look unjustifiably large.
- OEE gain: a target you can point to, such as a downtime cause you want to halve. Not a benchmark.
- Running costs: the subscription and hosting from your quote. If this field is 0, the result is too favourable.
The calculator does not count a postponed extra shift or line. That item can be large, but mention it separately in your business case. The full explanation with a worked example is in payback period of production data.
From estimate to measurement
The weakest input is almost always the OEE gain: you estimate it in advance. With the One-line concept you measure it on one line, within 6 to 8 weeks, and then enter measured figures here. VDS supplies the measurement layer; what you improve remains your decision.
Frequently asked questions
How do you calculate the ROI of production data?
Add up the annual saving on downtime, scrap and energy, deduct the running costs and divide the investment by that net saving. Times twelve gives the payback period in months.
What is contribution margin per hour?
Revenue minus variable costs, divided by the number of production hours. It is the margin an extra production hour brings in.
Why does the calculator count 50% by default?
Because an estimate made in advance is almost always too rosy. With measured figures you set the field to 100%.
What does a project cost on average?
Most projects start between €10,000 and €50,000: a one-off set-up plus a monthly subscription.
Does the calculator include postponed investments?
No. An extra shift or line you can postpone is something to mention separately in your business case.
