SmartHelping / Equipment Purchase Analysis / Excel

Equipment ROI Model

Evaluate a new or used equipment purchase before committing the capital. Connect the purchase cost, ongoing expenses, revenue gains and labor savings to the investment’s potential return.

Up to 120 months, with monthly and annual financial summaries.
Purchase, installation, maintenance, energy and debt-service inputs.
ROI, IRR and NPV sensitivity tables, plus DCF and salvage value.

$45One-time purchase / Excel download

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See the model in action

Follow the equipment purchase through the analysis.

Watch the walkthrough to review the cost and benefit assumptions, financial summaries and sensitivity tables. Open the screenshots below for a closer look at the workbook.

Open the model screenshots

Review the inputs and outputs alongside the video before choosing the template.

What the template includes

Put the equipment’s costs and benefits in one view.

The Equipment Purchase ROI Analysis Template helps you test the financial case for a capital investment using explicit purchase, operating-cost and monthly-benefit assumptions.

Purchase and installation costs

Enter the equipment purchase price and installation costs to establish the initial capital investment.

Ongoing equipment costs

Include maintenance, energy and debt-service assumptions when assessing the cost of owning and operating the equipment.

Revenue gains and labor savings

Estimate the expected monthly increase in revenue and the labor savings associated with the purchase.

Up to 120 months of operations

Review the investment over a horizon of up to 120 months, with monthly and annual financial summaries.

Three return sensitivity tables

Compare ROI, IRR and NPV across varying purchase prices and monthly benefits. See how changes to the key assumptions affect the investment case.

DCF, discount rate and salvage value

Set a discount-rate assumption for DCF analysis and include the equipment’s expected salvage value.

Compare the investment case

See how price and monthly benefit change the returns.

Three sensitivity tables present ROI, IRR and NPV across different equipment purchase prices and monthly benefits. Use them alongside the monthly and annual summaries to assess how much the conclusion depends on your assumptions.

Purchase-price scenarios

Compare different equipment prices to see how the initial capital commitment changes the modeled returns.

Monthly-benefit scenarios

Test the effect of changes in the expected monthly benefit, including the revenue gains and labor savings behind the investment case.

Timing and remaining value

Review the analysis over up to 120 months. Use the discount-rate and salvage-value assumptions to assess the present value of the investment’s projected cash flows.

How to use the model

Start with the quote. Build out the operating case.

Enter the upfront investment
Set the purchase price and installation costs for the proposed equipment.
Estimate ongoing costs and benefits
Enter maintenance, energy and debt service, together with the expected monthly revenue increase and labor savings.
Set the evaluation assumptions
Review the operating horizon, discount rate and expected salvage value.
Compare returns and sensitivities
Review the monthly and annual summaries, then compare purchase-price and monthly-benefit scenarios across ROI, IRR and NPV.

Who this template is for

For equipment decisions across industries.

Business owners and operations teams

Evaluate whether a proposed equipment purchase can justify its initial cost and ongoing operating requirements.

Accountants and finance teams

Organize the investment assumptions and compare return measures when reviewing a capital-expenditure proposal.

Before buying new or used equipment

Review the full operating impact.

Use this broader purchase checklist alongside the model’s stated inputs. Some items require separate estimates or review when preparing the investment assumptions.

Purchase, delivery and setup

Consider the purchase price, shipping, assembly, installation and any specialized labor needed to put the equipment into service.

Operating and financing costs

Review energy consumption, maintenance, repairs, supplies and materials. If financing is involved, consider interest and fees alongside the required debt payments.

Productivity, labor and quality

Assess higher output, faster service, automation and labor savings. Consider whether quality improvements can support additional sales or higher pricing.

Training and transition

Allow for employee training and the disruption or downtime that can occur during installation and the move to a new process.

Resale value, depreciation and tax

Estimate the value remaining when the equipment leaves the business. Consider depreciation and any applicable tax effects as part of the wider investment review.

Alternatives and opportunity cost

Compare the proposed purchase with the next-best use of the funds, including retaining existing equipment or choosing another investment.

Reliability, obsolescence and compliance

Consider equipment failure, changes in demand, technological obsolescence, environmental impact and any relevant compliance costs.

Employees and customers

Consider how the equipment may affect employee morale, customer satisfaction, productivity, loyalty and future sales.

Also available in these bundles

Need more accounting or investment tools?

This template is included in the Accounting, Manufacturing and Sensitivity Table collections, as well as the Super Smart Bundle.

Accounting Templates

Explore spreadsheets for accounting, cash flow, costing, financial reporting and analysis.

View the Accounting bundle

Manufacturing Models

Explore financial models and tools for manufacturing operations and investment planning.

View the Manufacturing bundle

Sensitivity Table Models

Compare changes in key assumptions using models with sensitivity-analysis outputs.

View the Sensitivity Models bundle

Super Smart Bundle

Access the complete public SmartHelping template collection across industries and financial-analysis needs.

View the Super Smart Bundle

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Places Of Interest

Equipment Purchase ROI Analysis Template

Follow the equipment purchase through the analysis.

Put the equipment’s costs and benefits in one view.

Purchase and installation costs

Ongoing equipment costs

Revenue gains and labor savings

Up to 120 months of operations

Three return sensitivity tables

DCF, discount rate and salvage value

See how price and monthly benefit change the returns.

Purchase-price scenarios

Monthly-benefit scenarios

Timing and remaining value

Start with the quote. Build out the operating case.

Enter the upfront investment

Estimate ongoing costs and benefits

Set the evaluation assumptions

Compare returns and sensitivities

For equipment decisions across industries.

Business owners and operations teams

Accountants and finance teams

Review the full operating impact.

Purchase, delivery and setup

Operating and financing costs

Productivity, labor and quality

Training and transition

Resale value, depreciation and tax

Alternatives and opportunity cost

Reliability, obsolescence and compliance

Employees and customers

Need more accounting or investment tools?

Accounting Templates

Manufacturing Models

Sensitivity Table Models

Super Smart Bundle

Explore complementary accounting and operating models.

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A few useful details.

Put the equipment investment to the test.