Payback period is one of the budgeting techniques which measures number of years taken by investment to recover the amount invested in the project. This calculator helps in estimating the payback period of the investments in the existing plants. It works on the principle of spreading overheads over the incremental expenses.
Suppose a company has a plant site where number of reactors are installed & their add up volumetric capacity is 500 KL (KiloLitre). The overhead expenses of the company can be taken from P&L account by subtracting variable expenses like RM, power and fuel cost from the total expenses.Now suppose in one of the sub plant whose existing wall limited capacity is 20 KL, we are proposing modification by installing one more 2 KL reactor which will enhance the production capacity from 500 Kg/month to 600 Kg/ month. This calculation will make it work out the ROI by estimating the savings because of revised overhead cost per KG of product and the corresponding payback period against the investment made.

Download Now And Calculate ROI for your investment by our Project Payback Calculator