Free tool
Factory Layout ROI Calculator
Calculate the payback time for reorganizing your factory layout to shorten material travel distance.
Current situation
Planned new layout
Result: factory layout reorganization payback
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You enter the current and planned movement distance per cycle, the number of cycles per day, the labour hourly rate, the travel speed, the investment and the number of working days. Distance saved = current − new; daily time saved = distance ÷ speed × cycles ÷ 60 (in hours); annual saving = time × hourly rate × working days; payback (months) = investment ÷ annual saving × 12.
Example: 180 m → 70 m, speed 60 m/min, 40 cycles a day, EUR 18/h, an investment of EUR 15,000 and 230 working days give 110 m saved, 1.22 h a day, EUR 5,060 a year and a payback of 35.6 months.
Frequently asked questions
What does payback period mean?
The time in which the investment is earned back through savings. Up to 12 months is fast, up to 36 reasonable and beyond that long.
What does the calculation not include?
Downtime during the re-layout, effects on safety and quality, and output growth. These should be assessed separately.
What happens if the saving is zero?
If the new distance is not shorter, the tool shows “—” as the payback period and a warning.
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