Most conveyor projects are approved on a payback calculation: how long until the savings and extra output repay the investment. A clear calculation also helps compare options, such as manual handling, a simple chain conveyor or a power and free system.
Where the savings come from
| Benefit | How to measure |
|---|---|
| Labour | Hours spent moving, loading and handling parts today |
| Output | Extra sellable products per year from higher capacity |
| Quality | Less rework and scrap from consistent processes |
| Floor space | Space freed for production or avoided building extension |
| Safety | Fewer manual lifts and handling injuries |
| Energy and materials | For example lower powder or energy use per part |
The basic formulas
Payback (years) = total investment ÷ annual net benefit
ROI (%) = (annual net benefit × years − investment) ÷ investment × 100
Net benefit means savings minus new running costs such as maintenance, energy and spare parts.
Worked example (illustrative figures)
| Item | Per year |
|---|---|
| Labour saved: 3 operators × 2,000 h × 25 per hour | 150,000 |
| Rework reduced | 20,000 |
| New maintenance and energy costs | −15,000 |
| Annual net benefit | 155,000 |
Illustrative numbers in any currency, not HITREE prices. Use your own data.
With a total investment of 400,000 including installation, payback is 400,000 ÷ 155,000 ≈ 2.6 years.
Include the full investment
- Equipment, carriers and controls
- Installation, commissioning and training
- Building work, utilities and structural changes
- Freight, duties and project management
- Production loss during installation
See what drives the investment in our power and free price guide.
Questions to ask your supplier
- What output can the line reach with our real products?
- Which operators and tasks does the conveyor replace or support?
- What are the yearly maintenance and spare parts costs?
- How long will installation interrupt production?
Common mistakes to avoid
- Counting labour savings for people who will still be needed
- Leaving out installation, building work and downtime
- Ignoring new running costs such as maintenance and energy
- Assuming full capacity from the first month instead of a ramp-up
Sensitivity check
Test the payback with less favourable assumptions, for example 20% lower savings or 15% higher investment. In the example above, 20% lower savings (124,000 per year) gives a payback of about 3.2 years. If the project still makes sense in the cautious case, the decision is robust.
