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RDMAICS • FREE PROCESS IMPROVEMENT TOOLS

Cost-Benefit, Payback & NPV

Compare an improvement investment with annual net cash inflows.

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Cost-Benefit, Payback & NPV

Browser-only calculations · No input data saved

For tables: one row per line, comma-separated columns, no header row. Avoid commas inside labels. Changing an input clears previous results.

Worked example results

NPV (currency units)
-52.592036
Present value of net inflows
9,947.407964
Discounted inflows / investment
0.994741
Simple payback (periods)
2.5
Net ROI over horizon (%)
20
IRR (%) — conventional flows only
9.701026

Rounded for display only. Export includes the inputs, results, method and assumptions. Refreshing or leaving the tool clears entered data.

How to use Cost-Benefit, Payback & NPV

  1. Load the worked example to see the required input format.
  2. Compare an improvement investment with annual net cash inflows. Use consistent units, periods and definitions.
  3. Select Calculate, review the assumptions and export the result for your project evidence.

Formula and method

NPV discounts year-end net inflows. Simple payback accumulates undiscounted net inflows until the initial outlay is recovered.

Interpretation and assumptions

Cash flows occur at year-end. Enter net inflows after recurring costs. Currency must be consistent. Simple payback is undiscounted. IRR is reported only for a conventional initial outflow followed by non-negative inflows; it is not a guaranteed return.

Results support professional judgement. They are not a certification of process stability, a financial commitment or a substitute for study design.

Frequently asked questions

How do I use the cost-benefit, payback & npv?

Compare an improvement investment with annual net cash inflows. Load the example first, then replace all inputs with consistent process data and select Calculate. NPV discounts year-end net inflows. Simple payback accumulates undiscounted net inflows until the initial outlay is recovered.

What assumptions matter for cost-benefit, payback & npv?

Cash flows occur at year-end. Enter net inflows after recurring costs. Currency must be consistent. Simple payback is undiscounted. IRR is reported only for a conventional initial outflow followed by non-negative inflows; it is not a guaranteed return.

Are my calculator inputs saved or sent to a server?

These native calculations run in this browser tab. Inputs are not sent to a server or saved by this calculator. Download the result if you need a record; leaving or refreshing clears the form.