ClueLuma

Simple payback (SPP) calculator

Use incremental cost when choosing between motor alternatives.

SPP=ΔCinitialSannual\mathrm{SPP} = \frac{{\Delta C_{\text{initial}}}}{S_{\text{annual}}}

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

$
$/yr
yr

Worked example

Given

  • ΔCinitial{\Delta C_{\text{initial}}} = 2,400 $
  • SannualS_{\text{annual}} = 950 $/yr
SPP=2400950≈2.526\mathrm{SPP} = \frac{2400}{950} \approx 2.526

Symbols and units

SymbolMeaningUnit
SPP\mathrm{SPP}simple paybackyr
ΔCinitial{\Delta C_{\text{initial}}}incremental installed investment$
SannualS_{\text{annual}}annual net savings$/yr

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Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.