Formula
Monthly net savings = gross savings − operating cost
Simple payback months = initial investment ÷ monthly net savings
Adjusted year-one benefit = monthly net savings × 12 × ramp rate
Five-year net value = adjusted year-one benefit + 48 × monthly net savings − investment
What the result means
Simple payback shows the number of months required for steady-state net savings to equal the initial investment. The first-year and five-year figures separately reflect the entered ramp assumption.
This is a cash-flow screening estimate. It does not include financing costs, taxes, depreciation, discount rates, resale value, or irregular replacements.