Formula
Net cost = installed cost − incentives
Annual net savingst = first-year savings × (1 + growth)t−1 − maintenance
Payback occurs when cumulative net savings = net cost.
What the result means
A shorter payback means the original net cost is recovered sooner under the entered cash-flow assumptions. Use the cumulative savings and ROI alongside payback because projects with similar payback periods can produce different long-term value.
This is a simple, undiscounted estimate. It excludes financing, taxes, depreciation, equipment replacement, residual value, and inflation unless reflected in your inputs.