Commercial equipment
Preventive maintenance return
Test whether an assumed reduction in breakdowns pays for a program.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
avoided expected loss-incremental maintenance spend.
Expected breakdown frequencies and loss per event are assumptions. Use contribution loss, not gross lost sales. Program spend excludes already-existing maintenance.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Expected annual breakdown events before program (events/year): Explicit owner-supplied assumption for expected annual breakdown events before program. Label it as a scenario and compare alternatives; do not present it as a forecast.
- Expected annual breakdown events with program (events/year): Explicit assumed breakdown frequency after the program, not guaranteed avoided failures.
- Contribution loss and repair cost per event (selected currency): Contribution loss plus actual repair/restart expense, without overlap.
- Incremental annual maintenance program cost (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for incremental annual maintenance program cost. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Expected annual avoided breakdown cost is $6,000.00 for the illustrative inputs below.
Example inputs
- Expected annual breakdown events before program: 4.00 events/year
- Expected annual breakdown events with program: 1.00 events/year
- Contribution loss and repair cost per event: $2,000.00
- Incremental annual maintenance program cost: $2,000.00
- Expected annual avoided breakdown cost
- $6,000.00
- Net annual program benefit
- $4,000.00
- Return on incremental annual spend
- 200.00 %
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Test whether an assumed reduction in breakdowns pays for a program.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.