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# Calculator for return on investment (ROI):

You can use this calculator to estimate the financial return on investment for initiatives or maintenance projects. It takes into account the associated expenses, anticipated benefits, and payback period. It helps in determining whether planned maintenance projects are viable and have potential value.

## Calculating Productivity Gain

Enter the average wage and benefits per hour, the number of hours saved per day, and the number of working days per year.

## Calculating Downtime Savings

Enter the cost of downtime per hour, the number of downtime hours per week, and the percentage reduction in downtime.

## Cost of Implementing and Running for 1 Year

Enter the implementation costs for the year.

## Glossary

1. Return on Investment (ROI): A financial metric used to evaluate the profitability or efficiency of an investment. It is calculated by dividing the net profit of the investment by the initial investment cost and expressing it as a percentage.
2. Investment: The amount of money or resources committed to an investment project or initiative.
3. Cost Savings: Reductions in expenses or costs resulting from implementing a particular strategy, solution, or improvement.
4. Net Profit: The total profit derived from an investment after deducting all expenses, including operating costs, taxes, and other relevant costs.
5. Payback Period: The time it takes for an investment to generate enough cash flow to recover the initial investment cost. It indicates how quickly an investment will “pay back” its initial cost.
6. Break-even Point: The point at which total revenue equals total costs, resulting in neither a profit nor a loss. It helps determine how much sales volume or revenue is needed to cover all expenses.
7. Cost-Benefit Analysis: A systematic process of comparing the costs of an investment or project with its expected benefits to determine its feasibility and potential profitability.
8. Cash Flow: The movement of money into and out of a business or investment over a specific period. It includes revenue, expenses, and investments.
9. Return on Assets (ROA): A financial ratio that measures the profitability of assets and indicates how efficiently a company utilizes its assets to generate profit.
10. Return on Investment Period: The length of time required for an investment to generate enough profit to cover the initial investment cost. It is often used in comparison to the payback period.
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