ROI Calculation Calculator
Calculate return on investment (ROI), net present value (NPV), payback period and internal rate of return (IRR) for an injection molding project. A professional tool for evaluating the profitability of investments in molds, machines and process optimization.
Input Parameters
Results
Fill in the data and click Calculate
ARGUS automatically calculates ROI for process optimization and tooling investments
ROI enables an objective assessment of investment profitability — ARGUS calculates ROI for various optimization scenarios and ranks them by effectiveness.
How do we calculate return on investment?
Return on Investment (ROI) is the fundamental indicator for assessing investment profitability. In injection molding, ROI is used to evaluate investments in new molds, machines, hot runner systems, automation and process optimization. The calculator determines four key indicators: simple ROI, payback period, NPV and IRR.
The calculator applies a discounted cash flow (DCF) model to determine net present value and internal rate of return.
Payback period = investment / annual profit
NPV = Σ [CFt / (1+r)t] − I₀
IRR: NPV(IRR) = 0
CFt — cash flow in year t
r — discount rate
I₀ — initial investment
NPV (Net Present Value) accounts for the time value of money — 1 EUR received next year is worth less than 1 EUR today. A positive NPV means the investment generates value above the required rate of return. IRR (Internal Rate of Return) is the discount rate at which NPV = 0 — the higher the IRR, the better the investment.
Typical Investments in Injection Molding
Hot runner system — 6–18 months at high volumes
Automation — take-out robot 12–24 months, full automation 24–48
Cycle Optimization — 3–12 months (low investment, fast payback)
Decision criteria: NPV > 0 (project is profitable), IRR > cost of capital (investment creates value), payback period < 3 years (acceptable for most companies). When comparing alternatives, choose the project with the higher NPV, not the higher ROI.
Sensitivity Analysis
Check how changes in key parameters (volume, price, costs) affect ROI. The most sensitive parameter is usually production volume — a 30% drop can double the payback period. ARGUS automatically performs sensitivity analysis and identifies project risks.
ARGUS automatically calculates ROI for every proposed process optimization
See for yourself — book a presentation and explore the ROI analysis in ARGUS.