Repair vs replace (payback) calculator

Compare repairing an old asset with buying a new one.

Calculating…

How it's calculated

Payback = (replacement cost − repair cost) ÷ annual saving Total cost = upfront cost + annual cost × years

Include downtime cost in the annual figures; it is usually the deciding factor. This simple comparison ignores interest, tax and resale value, which a finance team may want to add for large purchases.